Exercise 13-10 (Part Level Submission) Novak Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2017. January 10,400 $50.80 February 11,100 $47.90 March 8,000 $47.90 1.6 April 9,000 $47.90 May 8,600 $47.90 Estimated unit sales Sales price per unit Direct labor hours per unit Wage per direct labor hour 2.3 2.3 1.6 1.6 $8.00 $7.00 $7.00 $7.00 $8.00 Novak has a labor contract that calls for a wage increase to $8.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Novak expects to begin the year with 15,950 frames on hand and 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. (a) Your answer is partially correct. Try again. Prepare a production budget for Novak Company by month and for the first quarter of the year. NOVAK COMPANY Production Budget For the Quarter Ending March 31, 2017 v Jan Feb Mar Total Sales in Units 10400 11100 8000 29500 X Add v Desired Ending Inventory 15100 12500 13300 40900 Total Needs 25500 23600 21300 70400 Less Beginning Inventory 15950 15100 12500 15950 X Required Production Units 9550 8500 8800 54450 SHOW SOLUTION Required Production Units 9550 8500 8800 54450 SHOW SOLUTION LINK TO TEXT LINK TO TEXT VIDEO: APPLIED SKILLS Attempts: 3 of 3 used (b) Prepare a direct labor budget for Novak Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.) NOVAK COMPANY Direct Labor Budget Jan Feb Mar Total $ $ $ $ LINK TO TEXT LINK TO TEXT VIDEO: APPLIED SKILLS Attempts: 0 of 3 used