The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the
upcoming fiscal year:
Units to be oroduced
1s Onarter 2nd Quarter 3rd Quarter 4th Quarer
11,400
10,400
12.400
13.400 Each unit requires 0.30 direct labor-hours and direct laborers are
paid $12.50 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $94,000 per quarter. The only noncash element of manufacturing
overhead is depreciation, which is $34,000 per quarter.
Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.