Exercise 7-4 Preparing Direct Materials and Direct Labour Budgets (LO2-CC7, 8) - EDITED The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 7,300 2nd Quarter 8,300 3rd Quarter4th Quarter 6,388 5,300 Units to be produced In addition, the beginning raw materials Inventory for the first quarter is budgeted to be 1,550 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,090. Each unit requires 2.3 kilograms of raw material that costs $170 per kilogram Management desires to end each quarter with an Inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending Inventory for the fourth quarter IS 1,725 kilograms. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $15.5 per hour. Required: 1. Prepare the company's direct materials budget. (Round your answer to the nearest whole dollar amount.) HARESTON COMPANY Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total needs (kilograms) 2. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Do not round Intermediate calculations.) HARESTON COMPANY Direct Labour Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labour-hours needed Total direct labour cost