BUILT RIGHT FURNITURE MANUFACTURES DESKS, CHAIRS, TABLES, & SHELF UNITS SOLD TO SCHOOLS ON THE EAST COAST. THE CONTROLLER OF THE COMPANY IS CURRENTLY PREPARING A BUDGET FOR THE THIRD QUARTER OF THE YEAR. THE FOLLOWING SALES FORCAST HAS BEEN MADE BY THE DESK DIVISION'S SALES MANAGER. JULY 10,000 DESK & CHAIR SETS AUGUST. 12,000 DESK & CHAIR SETS SEPTEMBER 15,000 DESK & CHAIR SETS EACH DESK & CHAIR SET REQUIRES 10 BOARD FEET OF MAPLE PLANKS AND 1.5 HOURS OF DIRECT LABOR. EACH SET SELLS FOR $50. MAPLE PLANKS COST $.50 PER BOARD FOOT, AND THE COMPANY ENDS EACH MONTH WITH ENOUGH WOOD TO COVER 10% OF THE NEXT MONTH'S PRODUCTION REQUIREMENTS. THE COMPANY INCURS A COST OF $20 PER HOUR FOR DIRECT LABOR WAGES. THE COMPANY ENDS EACH MONTH WITH ENOUGH FINISHED GOODS INVENTORY TO COVER 20% OF THE NEXT MONTH'S SALES. REQUIRED: COMPLETE THE FOLLOWING BUDGET SCHEDULES. Aug sept 3,000 1. SALES BUDGET July SALES (IN SETS).. 10,000 SALES PRICE PER SET. X $50 SALES REVENUE... $500,000 2. PRODUCTION BUDGET (IN SETS) SALES... 10,000 ADD: DESIRED ENDING INV. 2,400 TOTAL REQUIREMENTS.. 12,400 LESS: PROJECTED BEGIN INV. 2,000 PLANNED PRODUCTION........ 10,400 3. RAW-MATERIAL PURCHASES PLANNED PRODUCTION (SETS) 10,400 RM REQUIRED PER SET (BOARD FT) X 10 RM REQUIRED FOR PROD (BF) 104,000 ADD: DESIRED END INV. OF RM IN BRD FT (10% OF NEXT MO) 12,600 TOTAL REQUIREMENTS............ 116,600 LESS: PROJECTED BEG INV. 10% 10,400 PLAN PUR OF RM (BRD FT)...... 106,200 COST PER BOARD FOOT...... X $50 PLAN PUR OF RM (DOLLARS) $53,100 4. DIRECT-LABOR BUDGET PLANNED PRODUCTION (SETS) 10,400 DL HOURS PER SET. X 1.5 DL HOURS REQUIRED.. 15,600 COST PER HOUR. X $20 PLANNED DL COST.. $312,000 16,000