1. Shipping Company plans to sell 90,000 units of a certain product line at a price of $16 There are 7,500 units of the product in the inventory at January 1 and the inventory is to be increased 15% during the year. Two types of materials are used to make the product. Three units of Material A, each costing 40 cents) are required for each unit of product, and two units of Material B, each costing 36 cents,are required for each unit of product On January 1, there are 10,000 units of Material A in inventory and 5,000 units of Material B. Plans for the year indicate both Material A and B inventories will increase 10%. Each unit of product can be produced in 20 minutes of direct labor time. Direct labor is paid at the rate of $12.00 an hour. The variable manufacturing overhead varies at the rate of $2.60 per direct labor hour and the fixed manufacturing overhead for the year is estimated at $175,000. Required: a. Prepare a production budget for the year. b. Prepare a materials purchases budget for the year. c. Prepare a labor cost budget for the year. d. Prepare a budget for manufacturing overhead for the year