Boland Corporation manufacturers personal Electric Golf Carts. John MacKinnon, Boland's controller is currently preparing the Company's budget for the next three months (April, May and June) of 2022. You have been asked to assist John with his task and you have gathered the following information: Sales The selling price of each golf cart is $1,200 per unit. All sales are on credit. Boland collects 40% of the credit sales during the month of sale and 58% in the month following sale. The remaining 2% in uncollectible. Actual and budgeted sales follow: February (Actual) 3,000 units March (Actual) 5,000 units April (Budgeted) 8,000 units May (Budgeted) 12,000 units) June (Budgeted) 18,000 units July (Budgeted) 10.000 units August (Budgeted) 6,000 units Production Boland produces enough units each month to meet the month's sales plus a desired inventory level equal to 40% of next month's estimated sales. Raw Materials The company purchases enough raw materials each month for the current month's production requirement and 30% of next month's production requirements. Each golf cart requires $550 in raw materials. Desired ending inventory of raw materials at June 30, 2022 is $858,000. Raw materials inventory on April 1 was $1,584,000. Boland pays 55% of raw materials purchases in the month of purchase and the remaining 45% in the following month. Accounts payable for purchases in March totalled $2,732,400. This account payable will be paid in April. Labour Each unit of finished product requires 4.5 hours of Direct Labour. The Direct Labour wage rate is $22 per hour. Boland also pays non-manufacturing labour each month totalling $225,000. Manufacturing Overhead Variable manufacturing overhead is 12% of the direct labour cost. Fixed overhead costs per month are as follows: Factory Supervisor Salary $25,000 Factory Insurance Factory Rent $3,000 $28,000 Depreciation Factory $15,000