Fillmore Company has developed the following standards related to the production of their finished units: Direct Materials (7 pounds per unit @ $6 per pound) Direct Labor (6 hours per unit @ $12 per direct labor hour) Variable Overhead (9 machine hours @ $5 per machine hour) Fixed overhead costs are estimated at $323,100 per quarter. Selling and administrative costs are expected to be $3 per unit variable and $370,000 fixed per quarter. The expected selling price is $280 per unit. The following sales forecast is available for the year 2020: 1st Quarter 7,000 units; 2nd Quarter 9,000 units; 3rd Quarter 8,000 units; and the 4th Quarter 11,000 units. The expected sales in the 1st Quarter of the year 2021 are 10,000 units. Management policy is to maintain a finished goods inventory equal to 30% of the next quarter's sales and a raw materials inventory equal to 25% of the next quarter's material production requirements. The beginning inventories of the 1st quarter of the year 2020 are expected to meet these same requirements, : Part A - Workpaper #11 - 1 PRODUCTION BUDGET Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 1 2