Preparing production budget and direct labor budget}

Scripps Manufacturing Company forecast October sales to be 45,000 units. Additional information follows:

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Finished goods inventory, October 1 4,000 units 5,000 units Finished goods inventory desired, October 31 Direct labor hours required in production: Department Cutting Assembly Hours per Unit 0.25 0.50 Direct laborers earn: Cutting, $14 per hour; Assembly, $12 per hour. Prepare the following: a. A production budget for October. b. A direct labor budget for October.