DeWitt Company makes and sells artistic picture frames for special events such as weddings and graduations. Bob Anderson, the controller, is responsible for preparing DeWitt's master budget and has accumulated the following information for 2013: (Click the icon to view the information.) DeWitt has a labor contract that calls for a wage increase to $11 per hour on April 1, 2013. The company will install new labor-saving machinery by March 1, 2013. DeWitt expects to have 22,500 frames on hand at December 31, 2012, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales. Read the requirements. Requirement 1. Prepare a production budget and a direct manufacturing labor budget for DeWitt Company by month and for the first quarter of 2013. You may combine both budgets in one schedule. The direct manufacturing labor budget should include labor-hours and show the details for each labor cost category. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Round your answers to the nearest whole number.) DeWitt Company Budget for Production and Direct Manufacturing For the Quarter Ended March 31, 2013 January Budgeted sales (units) Add target ending finished goods inventory (units) Total requirements (units) Deduct beginning finished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed text pages MOLLE Calculator Data table February 18,000 51.50 $ 5.0 8.00 $ $ 2013 March 9,500 9,500 Estimated sales in units Selling price January 15,000 58.00 $ 5.0 8.00 $ 51.50 9,000 51.50 $ 4.5 8.00 $ 51.50 $ 4.5 11.00 $ 4.5 $ 11.00 Direct manufacturing labor-hours per unit Wage per direct manufacturing labor-hour In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.50 per hour, worker's compensation insurance of $0.10 per hour, employee medical insurance of $0.30 per hour, and Social Security taxes. Assume that as of January 1, 2013, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by DeWitt on its employees is treated as a direct manufacturing labor cost. April May

has accumutated the follewing infermation for 2013 : (Click the icon to view the inlomation.) Read the tequirements. schedule. The direct manutactiring labor budget should indude labor-hours and show the detals for each labor cost category. Data table Secarty tases. Aswume that as of Jaruary 1,2013 , the Social Securily tax rutes are 7.5% for employen and manulactsing fabor cost