Habob makes a very popular undyed cloth sandal in one style, but in Regular and Deluxe. The Regular sandals have cloth soles and the Deluxe sandals have cloth covered wooden soles. Habob is preparing its budget for Dec. 2015, and has estimated sales based on past experience.

Other information for the month of December follows:

Input Prices

Direct materials Cloth $3.50 per yard

Wood $5.00 per board foot (b.f.)

Direct manufacturing labor $10 per direct manufacturing labor-hour

Input Quantities per Unit of Output (per pair of sandals)

	Regular	Deluxe
Direct materials
Cloth	1.3 yards	1.5 yards
Wood	0	2 b.f.
Direct manufacturing labor-hours (DMLH)	5 hours	7 hours
Setup-hours per batch	2 hours	3 hours
Inventory Information: Direct Materials
Direct Materials	610 yards	800 b.f
Target ending inventory	386 yards	295 b.f.
Sales and Inventory Information, Finished Goods
Expected sales in units (pairs of sandals)	2,000	3,000
Selling price	$ 80	$ 130
Target ending inventory in units	400	600
Beginning inventory in units	250	650
Beginning inventory in dollars	$15,500	$61,750

Required:

Prepare each of the following for December:

a. Revenues budget

b. Production budget in units

c. Direct material purchases budget in both units and dollars.