Unifying Concepts: Production, Direct Materials, Direct Labor, and Manufacturing Overhead Budgets; and Budgeted Product Cost Sheets San Antonio Furniture Company makes two products: bookshelves and rocking chairs. The following information is available for September:

a. Production requirements:

b. Levels of inventories:

Required:
1. Prepare the production budget, assuming that the company expects to sell 40 bookshelves and 50 rocking chairs in September.
2. Based on the production budget and the desired ending inventory level, prepare the direct materials usage and purchases budget for September. (Note: Direct materials purchases are paid for at the time of the purchase.)
3. Based on the production budget, prepare the direct labor budget for September.
4. Based on the production budget, prepare the manufacturing overhead budget for September.
5. Based on the operations budgets prepared above, prepare the budgeted product cost sheets for bookshelves and rocking chairs for September.

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Bookshelves Rocking Chairs Materials needed: Wood.. Stain Bolts, nuts, etc. Direct labor Variable manufacturing overhead Fixed manufacturing overhead* 100 board feet at $0.90 per foot 2 gallons at $9 per gallon 1 dozen at $1.50 per dozen 12 hours at $8.50 per hour 12 hours at $4 per direct labor hour $1,521 per month *Fixed manufacturing overhead is assigned to products using direct labor hours. 90 board feet at $0.90 per foot 3 gallons at $9 per gallon 1 dozen at $1.50 per dozen 10 hours at $8.50 per hour 10 hours at $4 per direct labor hour