1. Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 290 units in July and 380 units in August. Each unit requires 11 feet of wood at a cost of $1.20 per foot. Preston wants to always have 240 feet of wood on hand in materials inventory.

Compute Preston's direct materials purchases budget for July and August.

2. Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 260 units in July and 420 units in August. Each unit requires 2.50 hours of direct labor, and labor wages average $11 per hour. Compute Prestons direct labor budget for July and August.