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 2.3 $7.00 February 11,100 $47.90 2.3 $7.00 March 8,000 $47.90 Estimated unit sales Sales price per unit Direct labor hours per unit Wage per direct labor hour April 9,000 $47.90 May 8,600 $47.90 1.6 1.6 1.6 $7.00 $8.00 $8.00 Novak has a labor contract that calls for a wage increase $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 Jan Feb Mar Total Sales in Units 10400 11100 8000 29500 x X X Add Desired Ending Inventory 16700 14300 15020 15020 X x Total Needs 27100 25400 23020 44520 X x Less Beginning Inventory 15950 16700 14300 15950 Required Production Units 11150 8700 8720 28570