Cullumber Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020. January February March April May Estimated unit sales 11,000 11,600 8,900 8,500 8,400 Sales price per unit $50.50 $48.40 $48.40 $48.40 $48.40 Direct labor hours per unit 2.2 2.2 1.7 1.7 1.7 Wage per direct labor hour $8 $8 $8 $9 $9 Cullumber has a labor contract that calls for a wage increase to $9 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Cullumber expects to begin the year with 19,120 frames on hand and has a policy of carrying an end-of- month inventory of 100% of the following month's sales, plus 70% of the second following month's sales.