Please with solving process. 10. Hiska Ltd. manufactures its own soda pop bottle
ID: 2407248 • Letter: P
Question
Please with solving process. 10. Hiska Ltd. manufactures its own soda pop bottles. The production department of Hiska Ltd has submitted the following forecast of units to be produced by quarter for the upcoming fiscal years: 1Quarter 2nd Quarter Quarter 4 Quarter Units to be produced 12,000 10,000 13,00014,000 Each unit requires 0.2 direct labour hours and direct labours are paid RM12.00 per hour. In addition, the variable manufacturing overhead rate is RM1.75 per direct labour-hour. The fixed manufacturing overhead is RM86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is RM23,000 per quarter. Required i. Prepare a direct labour cost budget for first to fourth quarter Topic 9 BudgetPage 3 il. Prepare the company's manufacturing overhead budget for first to fourth quarter.Explanation / Answer
1-
Quarter
1
2
3
4
units to be produced
12000
10000
13000
14000
direct labor hours = .2 direct labor per unit
2400
2000
2600
2800
cost of direct labor = 12 per hour
28800
24000
31200
33600
2-
Manufacturing Overhead budget
Quarter
1
2
3
4
direct labor hours = .2 direct labor per unit
2400
2000
2600
2800
variable manufacturing budget = 1.75 per direct labor hour
4200
3500
4550
4900
fixed manufacturing overhead
86000
86000
86000
86000
total manufacturing overhead
90200
89500
90550
90900
1-
Quarter
1
2
3
4
units to be produced
12000
10000
13000
14000
direct labor hours = .2 direct labor per unit
2400
2000
2600
2800
cost of direct labor = 12 per hour
28800
24000
31200
33600
2-
Manufacturing Overhead budget
Quarter
1
2
3
4
direct labor hours = .2 direct labor per unit
2400
2000
2600
2800
variable manufacturing budget = 1.75 per direct labor hour
4200
3500
4550
4900
fixed manufacturing overhead
86000
86000
86000
86000
total manufacturing overhead
90200
89500
90550
90900