Question
The product department of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st -
The product department of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
1st - 9,000 2nd - 7,500 3rd - 8,000 4th - 8,500
Each unit requires 0.55 direct labour hours, and direct labour-hour workers are paid $12 per hour.
1. Construct the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
2. Construct the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is not adjusted each quarter. Instead, assume that the company's direct labour workforce consists of permanent employees who are guaranteed to be paid for at least 2,800 hours of work each quarter. If the number of required direct labour-hours is less than this number, the workers are paid for 2,800 hours anyway. Any hours worked in excess of 2,800 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labour.
Please show your work. Thanks!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started