The production department of Tarre Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. 1st Quarter2nd Quarter3rd Quarter4th QuarterUnits to be produced10,00012,00011,00010,500?Each unit requires 0.30 direct labor-hours at $16.00 per hour.Required:?Prepare a direct labor budget for the upcoming fiscal year, assuming that the direct labor work force is adjusted each quarter to match the number of hours required to produce the budgeted production.
What will be an ideal response?
| Tarre Corporation | |||||||||||
| Direct Labor Budget | |||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | ||||||||
| Required production in units | 10,000 | 12,000 | 11,000 | 10,500 | |||||||
| Direct labor-hours per unit | 0.30 | 0.30 | 0.30 | 0.30 | |||||||
| Total direct labor-hours needed | 3,000 | 3,600 | 3,300 | 3,150 | |||||||
| Direct labor cost per hour | $ | 16 | $ | 16 | $ | 16 | $ | 16 | |||
| Total direct labor cost | $ | 48,000 | $ | 57,600 | $ | 52,800 | $ | 50,400 | |||
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Razor Corporation produces and sells a single product at $40 per unit. During 2019, the company produced 200,000 units, 160,000 of which were sold during the year. All ending inventory was in finished goods inventory; there was no inventory on hand at the beginning of the year. The following data relate to the company's production process: Direct materials$550,000 Direct labor 400,000 Variable Manufacturing overhead 100,000 Fixed manufacturing overhead 300,000 Variable marketing and administrative 160,000 Fixed marketing and administrative 110,000 Required:Calculate the following. (a) The unit cost of ending inventory on the balance sheet prepared for stockholders.(b) The unit cost of ending inventory on a variable costing balance sheet.(c) The operating income using
absorption costing.(d) The operating income using variable costing.(e) The ending inventory using absorption costing.(f) The ending inventory using variable costing.(g) A reconciliation of the difference in operating income between absorption costing and variable costing using the shortcut method. What will be an ideal response?