a Problem 9-38 Completion of Budget Schedules (LO 2, 4) 2. Planned production, June: 15,000 sets 4. Planned direct-labor cost, May: $415,800 Reliable Furniture Company manufactures a variety of desks, chairs, tables, and shelf units that are marketed to small businesses. The controller of the company's Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division's sales manager. April May June 10,000 desk-and-chair sets 12,000 desk-and-chair sets 15,000 desk-and-chair sets Each desk-and-chair set requires .02 cubic meters of pine planks and 1.5 hours of direct labor. Each set sells for $54. Pine planks cost $250 per cubic meter, and the division ends each month with enough wood to cover 10 percent of the next month's production requirements. The division incurs a cost of $22 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished- goods inventory to cover 20 percent of the next month's sales. Required: Complete the following budget schedules. 1. Sales budget: May June Sales (in sets) Sales price per set April 10,000 X $54 Sales revenue $540,000 2. Production budget (in sets): April May June 10,000 2,400 3,000 Sales Add: Desired ending Inventory Total requirements ........ Less: Projected beginning inventory Planned production 12,400 2,000 10,400