b. Production data: ? Selling and administrative expense budget c. Direct-labor-hour data: ? Selling and administrative expense budget Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company's master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 5.0 hours to 4.75 hours. Labor-related costs include pension contributions of $0.55 per hour, workers' compensation insurance of $0.25 per hour, employee medical insurance of $1 per hour, and employer contributions to Social Security equal to 6.00 percent of directlabor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost. Spiffy Shades Corporation has a labor contract that calls for a wage increase to $19.00 per hour on April 1, 20x1. Management expects to have 28,000 frames on hand at December 31,200, and has a policy of carrying an end-of-month inventory of 100 percent of the following month's sales plus 50 percent of the second following month's sales. These and other data compiled by Demarest are summarized in the following table. 3. Prepare a production overhead budget for each month and for the first quarter. 2. For each item used in the firm's production budget and direct-labor budget, select the other components of the master budget (except for financial statement budgets) that also, directly or indirectly, would use these data. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) a. Sales data: ? Selling and administrative expense budget ? Production-overhead budget 1. Prepare a production budget and a direct-labor budget for Spiffy Shades Corporation by month and for the first quarter of 201. (Round "Direct-labor hours per unit" to 2 decimal places.) b. Production data: ? Selling and administrative expense budget c. Direct-labor-hour data: ? Selling and administrative expense budget Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company's master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 5.0 hours to 4.75 hours. Labor-related costs include pension contributions of $0.55 per hour, workers' compensation insurance of $0.25 per hour, employee medical insurance of $1 per hour, and employer contributions to Social Security equal to 6.00 percent of directlabor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost. Spiffy Shades Corporation has a labor contract that calls for a wage increase to $19.00 per hour on April 1, 20x1. Management expects to have 28,000 frames on hand at December 31,200, and has a policy of carrying an end-of-month inventory of 100 percent of the following month's sales plus 50 percent of the second following month's sales. These and other data compiled by Demarest are summarized in the following table. 3. Prepare a production overhead budget for each month and for the first quarter. 2. For each item used in the firm's production budget and direct-labor budget, select the other components of the master budget (except for financial statement budgets) that also, directly or indirectly, would use these data. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) a. Sales data: ? Selling and administrative expense budget ? Production-overhead budget 1. Prepare a production budget and a direct-labor budget for Spiffy Shades Corporation by month and for the first quarter of 201. (Round "Direct-labor hours per unit" to 2 decimal places.)