Annie's Homemade prepares a direct materials budget for its ice cream base, which is the foundational component of all ice cream flavors. It includes ingredients such as whole milk, heavy cream, and sugar that provide a "blank canvas" for creating create specific flavors. The company buys ice cream base from a supplier for $62 per case, each of which contains two 2.5 -gallon bladders. Each 2.5 gallon bladder produces an average of 40 servings of ice cream. The company always maintains ending inventories equal to 20% of next quarter's production needs. The estimated quarterly production (in servings) for next year are as follows: Required: Prepare a direct materials budget by quarter and in total for next year. Annie's Homemade has three salaried employees whose combined annual compensation totals $105,000. Its other employees are paid $8.00 per hour and scheduled in four-hour shifts. The number of employees working at any point in time depends on the hour of the day, the day of the week, the month of the year, and the number of off-site events. The company estimates 700 non-salary laborhours for the month of October. Required: Prepare a labor budget for October