E6-29 (similar to) Question Help Peterson Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kyler, the controller, is responsible for preparing Peterson's master budget and has accumulated the following information for 2018: i(Click the icon to view additional information.) (Click the icon to view some of the financial information.) Read the requirements. portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then enter all amounts in the budget [other than the direct manufacturing labor-hours per unit] to the nearest whole number.) Peterson Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2018 February January March 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 Enter any number in the edit fields and then click Check Answer. In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.50 per hour, worker's compensation insurance of $0.15 per hour, employee medical insurance of $0.40 per hour, and Social Security taxes Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Peterson on its direct manufacturing employees is treated as a direct manufacturing labor cost Peterson has a labor contract that calls for a wage increase to $14 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Peterson expects to have 21,500 frames on hand at December 31, 2017, 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 - X i Data Table 2018 March May January February April Estimated sales in units 17,000 18,000 7,000 9,000 9,000 55.00 $ 50.50 $ 50.50 $ 50.50 $ Selling price 50.50 Direct manufacturing labor-hours per unit 3.5 3.5 1.5 1.5 1.5 8.00 $ 8.00 $ 8.00 $ 14.00 $ 14.00 Wage per direct manufacturing labor-hour Print Done