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What am I doing wrong in this question Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The
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Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. First Quarter 24,800 Second Quarter 22,900 Third Quarter 20,300 Fourth Quarter 22,800 Budgeted unit sales At the end of the previous quarter there were 2,500 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year. Each light requires 0.75 direct labour-hours for assembly and employees are paid $21 per hour. Required: Prepare 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 forecast number of units. (Round "Direct labour time per unit" answers to 2 decimal places. Round "Total direct labour hours needed" answers to whole number.) Required: Prepare 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 forecast number of units. (Round "Direct labour time per unit" answers to 2 decimal places. Round "Total direct labour hours needed" answers to whole number.) X Answer is complete but not entirely correct. FORTIN LIMITED Direct Labour Budget First Second Quarter Quarter 24,800 22,900 Third Quarter 20,300 Fourth Quarter Year 22,800 90,800 Units to be produced Direct labour time per unit (hours) 0.75 0.75 0.75 0.75 0.75 Total direct labour hours needed 18,600 17,175 15,225 17,100 68,100 Direct labour cost per hour $ 21.00 21.00 $ 21.00 $ 21.00 $ 21.00 Total direct labour cost $ 390,600 360,675 319,725 $ 359,100 $ 1,430,100Step by Step Solution
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