E6-29 (similar to) Question Help Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kerry, the controller, is responsible for preparing Roletter's master budget and has accumulated the following information for 2018 Click the icon to view some of the financial information.) Click the icon to view additional information) Read the requirements Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Roletter Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost 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. Enter the direct manufacturing labor hours per un to one decimal place. XX. Do not round interim calculations, and then enter all amounts in the budget (other than the direct manufacturing labor hours per un to the nearest whole number.) Roletter Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2018 - Data Table 2018 January February March Estimated sales in units 11,000 13,000 5,000 Selling price $ 58,00 $ 52.00 $ 52.00 $ Direct manufacturing labor-hours per unit 3.5 2.5 Wage per direct manufacturing labor-hour $ 10.00 $ 10.00 $ 10.00 $ April 9,000 52.00 $ May 9,000 52.00 3,5 2.5 2.5 13.00 $ 13.00 March Roletter Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2018 January February Budgeted sales (units) 11000 13000 Add target ending finished goods inventory (units) Total requirements (units) Deduct beginning finished goods inventory (units) 5000 il Gold and then click Check Answer More Info -X pany the i icon Requirements urer In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.40 per hour, worker's compensation insurance of $0.15 per hour, employee medical insurance of $0.30 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 Roletter on its direct manufacturing employees is treated as a direct manufacturing labor cost Roletter has a labor contract that calls for a wage increase to 513 per hour on April 1, 2018 New labor-saving machinery has been installed and will be fully operational by March 1, 2018 Roletter expects to have 15,500 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 1. Prepare a production budget and a direct manufacturing labor cost budget for Roletter Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category 2. What actions has the budget process prompted Roletter's management to take? 3. How might Roletter's managers use the budget developed in requirement to better manage the company? es Print Done ding nent ning Print Done