EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply bag production: Drect matenals p 70 er vard 110 vatds canyas finish al $11.30 per vard Directlabor $18 50 per hour Overhead per bag ndirort malorials Power 2.10 Building accupend 2 60 cy 10 80 Total overhesd per unit You learn that equipment costs and building occupancy are fixed and are based on a normal production of 530,000 units per year, Olther overhead costs are variable, Plant capacity is sufficient to produce 655.000 units per vear. Labor costs per hour are not expected to change during the year. However, the cotton suppler has Infomed EcoSacks that It will Impose a 20 percent price Increase at the start of the coming budget perlod. No other costs are expected to change. During the coming budget period, EcoSacks expects to sel 470,000 bags. Finished goods inventory is targeted to increase from the current balanoe of 150,000 units to 185,000 units to prepare for an expected sales increase the several states regarding plastic bags. Productlon will occur evently throughout the year. Inventory levels for cotton and canvas are expected remain unchanged throughout the year. rkn-ocess inentory Required: a. Prepare a production budget for the coming year ECOSACKS Production Budget For the Com Year (in unite) Tolal needs Units to be produced b. Estimate the materials, labor, and overhead costs for the coming year. Material costs Labor costs Overhead costs