Zordich lnc_ has gathered the following budgeting information for next year and has asked you to prepdre their master budget. d. e. f. Sales for the final quarter of the prior year tote} 2,900 units. Expected sales (in units) for the current year are: 2,610 (Quarter 1), 1,740 (Quarter 2), 2,320 (Quarter 3), and 2.320 (Quarter 4). Sales for the first quarter of the following year total 3,480 units. The selling price is $620 per unit in the first three quarters of the year, and $650 per unit in the final quarter. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of tie next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,305 units, which complies with the policy. The product's manufacturing cost is $199 per unit, including per unit costs of $120 for materials (8 lbs. at $15 per lb.), $54 for direct labor (3 hours x $18 direct labor rate per hour), $21 for vorioble overhead, ond $4 for fixed overheod_ Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $15,100; factory utilities, $18,900, and other factory overhead of $3,700. Company policy also cells for a given quarter's ending raw materials inventory to equal 60% Of next quarter's expected materials needed for production_ The prior year-end inventory is 10,440 lbs of materials, which complies with the policy. The company expects to have 16,704 lbs. o/ materials in inventory at year-end. The company has no work in process inventory at the ene of any quarter. Sales representatives' commissions are 18% Of sales and are paid in the quarter of the sales.iThe sales manager's quarterly salary will be $198,000 in the first three quarters of the year, and $211,000 in the final quarter. Quarterly general and administrative expenses include $84,000 administrative salaries, rent; expense of $50,000 per quarter, insurance expense of $40,000 per quarter, straight- line depreciat\on of $40,000 per quarter, and 1% monthly interest on the $400,000 long-term note payable (12% annually). Income taxes Will be assessed at 35%, and are paid in the quarter incurred. Requirement Prepare the Direct Labor Budget for Zordich Inc The produces manufacturing cost is $199 per unit, including per unit costs of $120 for materials (8 lbs. at $15 per lb.), $54 for direct labor (3 hours X $18 direct labor rate per hour), $21 for variable overhead, and $4 for fixed overhead. DiieCt Lb Oi BudOet For the year ended December 31, 2018 Total direct labor hours needed Total budgeted direct labor cost (dollars) R q Prepa the Budget for Zordich The "roducts manufacturing is $199 per nit, including pei unit of SIZO for materials (8 lbs. at SIS per lb.), SS4 far labor (3 houis X S 18 dict 'abointe viable and S 4 for Annual fixed o c ists, inu"ed throughout hour), $21 f va wear, of on $ IS,IOO; utilities, 518,900, and of $3,700. Factory Overhead dudget For the ended December 31, Budgeted variable ovuhnd total Requirement Prepare the selling expense budget for the Zordich Inc.. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary Will be $198,000 in the first three quarters Of the and $211iOOO in the final quarter. Selling Expense Budget For the year endty December 31, 201' SaB C OmmiSSionS J SC I 'no expenses 198.000 198.000 211,000