15. Now that you have succeeded in budgeting the amount of production for the upcoming month, what 3 things can we proceed to plan for (budget)? NOW ASSUME that, according to your calculations, under the expected operating conditions next month (normal operating conditions), one chair should require the following inputs (known as production standards): 10 yards of wood @ \$2 per yard (\$20 per unit) 2 hours of direct labor at $10 per hour (\$20 per unit) 16. Ok, based on the standards, how much wood would we need for production in the upcoming month? 17. Might there be any advantages to holding extra inventory of wood, like we did with finished chairs? Any disadvantages? 18. So, of we pretend that we had NO wood on hand at the start of the period, and if we wanted to have 1,000 extra yards on hand at the end, how much wood do we plan to purchase this month? 19. What if we planned to have 2,000 yards of wood on hand at the start of the period.... NOW how much wood do we need to purchase? 20. What would be the budgeted COST of wood for the period? 21. Ok what about direct labor .... How many hours would we plan for the month? What would be our budgeted cost of direct labor for the month