6.11 Production, direct materials and direct labour budgets Seer Manufacturing has projected sales of its product for the next six months as follows: January February March April May June 40 units 90 units 100 units 80 units 30 units 70 units The product sells for $100, variable expenses are $70 per unit, and fixed expenses are $1500 per month. The finished product requires 3 units of raw material and 10 hours of direct labour. The entity tries to maintain an ending inventory of finished goods equal to the next two months of sales and an ending inventory of raw materials equal to half of the current month's usage. Required (a) Prepare a production budget for February, March and April. (b) Prepare a forecast of the units of direct materials required for February, March and April. c) Prepare a direct labour hours budget for February, March and April. (LO2)