Question

The production department of Marks (Pty) Ltd has submitted the following forecast of units to be produced by quarter for the upcoming financial year: Units to be produced: 1st quarter: 12,000 2nd quarter: 10,000 3rd quarter: 13,000 4th quarter: 14,000 Each unit requires 0.2 direct labor hours, and direct laborers are paid R12 per hour. In addition, the variable manufacturing overhead rate is R1.75 per direct labor hour. The fixed manufacturing overhead is R86.

Name: the production department of marks pty ltd has submitted the following forecast of units to be produced by quarter for the upcoming financial year units to be produced 1st quarter 12000 2nd 17846
Uploaded: 2022-05-01T21:51:41-08:00
Duration: 2 min 53 s
Channel: Rahul Mahato
Description: the production department of marks pty ltd has submitted the following forecast of units to be produced by quarter for the upcoming financial year units to be produced 1st quarter 12000 2nd 17846

          The production department of Marks (Pty) Ltd has submitted the following forecast of units to be produced by quarter for the upcoming financial year:

Units to be produced:
1st quarter: 12,000
2nd quarter: 10,000
3rd quarter: 13,000
4th quarter: 14,000

Each unit requires 0.2 direct labor hours, and direct laborers are paid R12 per hour. In addition, the variable manufacturing overhead rate is R1.75 per direct labor hour. The fixed manufacturing overhead is R86.

Added by Christine K.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Rahul Mahato

05/01/2022

Step 1

To calculate the total direct labor hours required for each quarter, we multiply the number of units to be produced by the direct labor hours per unit. 1st quarter: 12,000 units * 0.2 direct labor hours per unit = 2,400 direct labor hours 2nd quarter: 10,000 Show more…

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The production department of Marks (Pty) Ltd has submitted the following forecast of units to be produced by quarter for the upcoming financial year: Units to be produced: 1st quarter: 12,000 2nd quarter: 10,000 3rd quarter: 13,000 4th quarter: 14,000 Each unit requires 0.2 direct labor hours, and direct laborers are paid R12 per hour. In addition, the variable manufacturing overhead rate is R1.75 per direct labor hour. The fixed manufacturing overhead is R86.