Austin Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Bob Anderson, the controller, is responsible for preparing Austin's master budget and has accumulated the following information for 2015

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- Data Table 2015 January February March April May Estimated sales in units 17,000 19,000 7,000 12,000 12,000 Selling price $ 56.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 Direct manufacturing labor-hours per unit 3.0 3.0 2.0 2.0 2.0 Wage per direct manufacturing labor-hour $ 8.00 $ 8.00 $ 8.00 $ 12.00 S 12.00 In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.60 per hour, worker's compensation insurance of $0.20 per hour, employee medical insurance of $0.30 per hour, and Social Security taxes. Assume that as of January 1, 2015, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Austin on its employees is treated as a direct manufacturing labor cost. Print Done - -X Requirements 1. Prepare a production budget and a direct manufacturing labor budget for Austin Company by month and for the first quarter of 2015. You may combine both budgets in one schedule. The direct manufacturing labor budget should include labor-hours and show the details for each labor cost category. 2. What actions has the budget process prompted Austin's management to take? 3. How might Austin's managers use the budget developed in requirement 1 to better manage the company? Print Done March Austin Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2015 January February Budgeted sales (units) Add target ending finished goods inventory (units) Total requirements (units) Deduct beginning finished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Prepare a direct labor budget for Bramble Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.) BRAMBLE COMPANY Direct Labor Budget Jan Feb Mar Total $ $ $ A $