A. Direct Materials Purchases Budget

Marshall Publishers Inc. budgeted production of 62,000 diaries in 2016. Paper is required to produce a diary. Assume 106 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 263,000 square yards. The desired December 31, 2016, paper inventory is 296,000 square yards.

If paper costs $0.13 per square yard, determine the direct materials purchases budget for 2016. If required, round your final answer to the nearest dollar.

B. Direct Labor Cost Budget

Stevenson Publishers Inc. budgeted production of 54,000 diaries in 2016. Each diary requires assembly. Assume that four minutes are required to assemble each diary.

If assembly labor costs $15.75 per hour, determine the direct labor cost budget for 2016. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.