Bakersfield Company makes and sells glare filters for microcomputer monitors. Steve Smith, the controller, is responsible for preparing Bakersfield$$s master budget and assembled the following data for the upcoming year. The direct materials cost per filter is $$9$ in December of the current year. However, it is expected to decrease to $$8$ per unit in February of the upcoming year. Labor saving machinery will be operational by March of the upcoming year. Also, as of March $1,$ the company plans to increase its direct labor rate. Direct labor for Bakersfield is considered variable because the company can call in its workers when needed and send them home when not needed. Bakersfield has a policy of carrying ending finished goods inventory equal to $35$ percent of the following month$$s projected sales in units. Information for December of the current year and for the first four months of the upcoming year is as follows:

December January February March April

Estimated filter sales $30,00036,00034,50039,00038,600$

Sales price per filter $$80$ $$80$ $$80$ $$75$ $$75$

Direct labor hours per filter $3\mathrm{.}03\mathrm{.}03\mathrm{.}02\mathrm{.}52\mathrm{.}5$

Direct labor rate per hour $$18$ $$18$ $$18$ $$20$ $$20$

Direct materials cost per filter $$9$ $$9$ $$8$ $$8$ $$8$

Bakersfield expects to carry no beginning or ending work$-$in$-$process inventory. Assume Bakersfield$$s only manufacturing costs are direct materials and direct labor.d$.$ Finished goods inventory budget