Allison Manufacturing produces a sub assembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturing and aircraft maintenance facilities. Projected sales in units for the coming five months follows. The following data pertain production policies and manufacturing specifications followed by Allison Manufacturing. a. Finished goods inventory on January 1 is 32, 000 units, each costing $166, 06. The desired ending inventory for each month is 80% of the next month's sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is excatly the amount of material on hand on December 31 of the prior year. c. the direct labor used per unit of output is three hours. The average direct labor cost per hour $14.25. d. Overhead each month is estimated using a flexible budget formula. c. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula