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Preparing a Direct Labor Budget Patrick Inc. makes industrial solvents. Planned production in units for the first three months of the coming year is: January 45,000 February 50,000 March 60,000 Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $17.10 per hour. Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Labor Budget For the Coming First Quarter January February March Direct Labor Budget: Units to be produced Direct labor hrs per unit Total direct labor hrs Wage rate Direct labor cost Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January 13,140 February 12,300 March 15,075 The variable overhead rate is $0.70 per direct labor hour. Fixed overhead is budgeted at $2,740 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. Patrick Inc. Overhead Budget For the Coming First Quarter January February March Overhead: Total direct labor hrs Variable overhead rate $ Total variable overhead Add: Fixed overhead Total overhead Preparing a Cost of Goods Sold Budget Andrews Company manufactures a line of office chairs. Each chair takes $16 of direct materials and uses 1.9 direct labor hours at $18 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.30 per direct labor hour. Andrews Company expects to produce 20,000 chairs next year and expects to have 720 chairs in ending inventory. There is no beginning inventory of chairs. Required: Prepare a cost of goods sold budget for Andrews Company. Round your answers to the nearest dollar. Andrews Company Cost of Goods Sold Budget For the Coming Year