Delay Manufacturing needs to better budget and analyze costs. While Delray has experienced high sales growth, it has struggled to effectively manage costs and inventories. Delray aims to end each month with direct materials inventory equal to 40% of next month's production needs. Each finished unit requires 4 pounds of direct materials and 2 hours of direct labor Delray budgets $12.000 of fixed overhead costs per month. A Tableau Dashboard is provided to aid our analysis Sales Forecast & Production Budget (in Units) 1,500 Budgeted Production Sale Forecast 1.200 Budgeted Production 900 . Sales Forecast 600 300 June May April July Ending Direct Materials Inventory by Month 1,500 Budgeted Production Sales Forecast 1,200 Budgeted Production 900 Sales Forecast 600 300 April May June July Ending Direct Materials Inventory by Month March April Solve for this value May Solve for this value Solve for this value June 1600 2000 D 400 800 1200 Direct Materials (Pounds) 400 1600 2000 800 1200 Direct Materials (Pounds) Direct labor rate Direct materials cost Variable overhead rate I tableau - 8p 1. Prepare a direct labor budget for each month of April May, and June 2. Prepare a factory overhead budget for each month of April, May, and June 3. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 15 hours. Compute the direct labor budget for April assuming the company ta) does not hire more skilled workers and (b) hires more skilled workers. 4. The company is considering hiring more skilled workers. These workers would increase the direct labor rate to $21 per hour and reduce direct labor hours required per finished good to 15 hours. How would this change to more skilled workers impact total budgeted factory overhead (assuming the budgeted variable overhead rate is unchanged)? June DELRAY MANUFACTURING Direct Labor Budget For April, May, and June April May Units to produce 880 1.100 Direct labor hours required per unit (hrs.) Direct labor hours needed Direct labor cost per hour Cost of direct labor 1,075 units DELRAY MANUFACTURING Factory Overhead Budget For April, May, and June April May June Direct labor hours needed (part 1) Variable overhead rate per DLH Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead DELRAY MANUFACTURING Direct Labor Budget for April Does Not Hire Units to produce 880 Direct labor hours required per unit (hrs.) Direct labor hours needed Direct labor cost per hour Cost of direct labor Does Hire 880 units