Exercise 23-10 Lowell 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	February	March	April	May
Estimated unit sales	10,200	11,800	8,600	8,900	8,400
Sales price per unit	$50.20	$47.10	$47.10	$47.10	$47.10
Direct labor hours per unit	2.0	2.0	1.6	1.6	1.6
Wage per direct labor hour	$7.00	$7.00	$7.00	$8.00	$8.00

Lowell 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. Lowell expects to begin the year with 18,460 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following months sales, plus 70% of the second following months sales.

Prepare a production budget for Lowell Company by month and for the first quarter of the year.

LOWELL COMPANY Production Budget March 31, 2017For the Year Ending March 31, 2017For the Quarter Ending March 31, 2017
Jan	Feb	Mar	Total
Direct Labor Hours Per UnitDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Hours NeededDesired Ending InventoryCost Per PoundRequired Production UnitsTotal Direct LaborTotal Materials RequiredTotal NeedsSales in UnitsRate Per HourDesired Ending Direct MaterialsBeginning Direct MaterialsBeginning Inventory
AddLess: Direct Labor Hours Per UnitCost Per PoundDesired Ending Direct MaterialsBeginning InventoryDesired Ending InventoryBeginning Direct MaterialsDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal NeedsRequired Production UnitsRate Per HourTotal Materials RequiredSales in UnitsTotal Direct LaborTotal Hours Needed
Required Production UnitsDirect Labor Hours Per UnitDesired Ending InventoryTotal NeedsDirect Materials PurchasesDesired Ending Direct MaterialsTotal Direct LaborRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Hours NeededTotal Materials RequiredBeginning Direct MaterialsBeginning InventoryCost Per Pound
AddLess: Desired Ending Direct MaterialsTotal Direct LaborRequired Production UnitsDirect Labor Hours Per UnitTotal NeedsRate Per HourSales in UnitsTotal Hours NeededDirect Materials PurchasesBeginning InventoryTotal Cost of Direct Materials PurchasesTotal Materials RequiredBeginning Direct MaterialsCost Per PoundDesired Ending Inventory
Total Direct LaborTotal NeedsDirect Materials PurchasesRate Per HourTotal Cost of Direct Materials PurchasesSales in UnitsRequired Production UnitsBeginning Direct MaterialsTotal Hours NeededCost Per PoundBeginning InventoryDesired Ending InventoryDesired Ending Direct MaterialsTotal Materials RequiredDirect Labor Hours Per Unit

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Prepare a direct labor budget for Lowell 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.) LOWELL COMPANY Direct Labor Budget For the Quarter Ending March 31, 2017For the Year Ending March 31, 2017March 31, 2017 Jan Feb Mar Total Production in UnitsDesired Ending InventoryTotal Hours NeededTotal NeedsTotal Cost of Direct Materials PurchasesRate Per HourSales in UnitsDirect Labor Hours Per UnitTotal Materials RequiredDirect Materials PurchasesTotal Direct LaborBeginning Direct MaterialsCost Per PoundBeginning InventoryDesired Ending Direct Materials Sales in UnitsDirect Labor Hours Per UnitBeginning InventoryTotal Cost of Direct Materials PurchasesDesired Ending Direct MaterialsTotal NeedsTotal Direct LaborProduction in UnitsRate Per HourTotal Materials RequiredBeginning Direct MaterialsTotal Hours NeededCost Per PoundDirect Materials PurchasesDesired Ending Inventory Total Materials RequiredBeginning Direct MaterialsTotal Direct LaborBeginning InventoryDirect Labor Hours Per UnitCost Per PoundTotal Hours NeededTotal NeedsRate Per HourProduction in UnitsDesired Ending Direct MaterialsSales in UnitsTotal Cost of Direct Materials PurchasesDirect Materials PurchasesDesired Ending Inventory Total Cost of Direct Materials PurchasesDesired Ending Direct MaterialsTotal NeedsBeginning InventoryDirect Materials PurchasesCost Per PoundRate Per HourDesired Ending InventoryDirect Labor Hours Per UnitSales in UnitsTotal Direct LaborProduction in UnitsTotal Hours NeededTotal Materials RequiredBeginning Direct Materials $ $ $ Rate Per HourTotal Hours NeededSales in UnitsTotal NeedsTotal Materials RequiredBeginning Direct MaterialsBeginning InventoryCost Per PoundDirect Labor Hours Per UnitDesired Ending Direct MaterialsDesired Ending InventoryProduction in UnitsDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Direct Labor $ $ $ $