Exercise 4. (30 points) Encone Co.'a sales budget projects sales of 150,000 units of a certain product linea price of $8 per unit. There are 10,000 units of the product in inventory at January 1 and the inventory is to be increased 20% during the year. a Two kind of materials, X and Y, are used to make the product. 3 units of Material X, costing 50 cents each, are required for each unit of product, and 4 units of Material Y, costing 30 cents each, are required for each unit of product. On January 1, there are 10,000 units of Material X in inventory and 5,000 units of Material Y. Plans for the year indicate that 14,000 units of Material X and 8,000 units of Material Y are to be in the inventory on December 31. Each unit of product can be produced in 15 minutes of direct labor time. Direct laboris paid at the rate of $7.00 an hour. The variable manufacturing overhead rate is $0.50 per machine hour and the fixed manufacturing overhead for the year is estimated at $140,000. Required: a. Prepare a production budget for the year. b. Prepare a direct materials budget for the year. c. Prepare a direct labor budget for the year