Ch8 Assignment (Summer 2023): CBA company has budgeted the sales of its smartwatch over the next four months as follows: The company is now in the process of preparing a production budget for the first quarter. Past experience has shown that end-of-month finished goods inventories must equal 15% of the next month's sales. The inventory at the end of December was 6,750 units. First Requirement: Prepare a production budget for the first quarter showing the number of units to be produced each month and for the quarter in total. Second Requirement: At CBA company, each unit of product requires 4 hours of direct labor. CBA pays its workers at the rate of $6 per hour. Prepare a direct labor budget for the first quarter (each month and in total). Third Requirement: The company's variable manufacturing overhead rate is $2.30 per direct labor-hour and the company's fixed manufacturing overhead is $60,000 per month. The only noncash item included in fixed manufacturing overhead is depreciation, which is $20,000 per month. Prepare CBA company's manufacturing overhead budget for the first quarter (each month and in total). Compute the company's predetermined overhead rate for the first quarter