Roletter Company makes and sells artistic frames for pictures of weddings, graduations, christenings, and other special events. Lynn Anderson, controller, is responsible for preparing Roletter's budget and has accumulated the following information for 20B.

Labor-related costs include pension contributions of 25 cents per hour, workers' compensation insurance of 10 cents per hour, employee medical insurance of 40 cents per hour, and social security and unemployment taxes of 10% of wages. The cost of employee benefits paid by Roletter on its employees is treated as a direct labor cost.
Roletter has a labor contract that calls for a wage increase to $9 per hour on April 1, 20B. New labor saving machinery has been installed and will be fully operational by March 1, 20B.
Roletter expects to have 16,000 frames on hand at December 31, 20A, and has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales.
Required:
(1) Prepare a production budget and a direct labor budget for Roletter Company by month and for the first quarter of 20B. Both budgets can be combined in one schedule. The direct labor budget should include direct labor hours and show the detail for each direct labor cost category.
(2) For each item used in Roletter's production budget and its direct labor budget, identify the other component(s) of the periodic budget that also use these data.

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Apr9,000 January February March April 9,000 May Estimated unit sales... Sales price per unit.. Direct labor hours per unit...... Wage per direct iabor hour... 10,000 $50.00 2.0 8.00 12.000 $47.50 2.0 $8.00 8,000 $47.50 $47.50 $47.50 1.5 8.00 9.00 9.00 1.5 1.5