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Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets

The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows:

a$.$ Estimated sales of King and Prince chairs for February by sales territory:

Northern Domestic:

King $610$ units at $$780$ per unit

Prince $750$ units at $$550$ per unit

Southern Domestic:

King $340$ units at $$780$ per unit

Prince $440$ units at $$550$ per unit

International:

King $360$ units at $$850$ per unit

Prince $290$ units at $$600$ per unit

b$.$ Estimated inventories at February $1$:

Direct materials:

Fabric $420$ sq$.$ yds$.$

Wood $580$ linear ft$.$

Filler $250$ cu$.$ ft$.$

Springs $660$ units

Finished products:

King $90$ units

Prince $25$ units

c$.$ Desired inventories at February $28$:

Direct materials:

Fabric $390$ sq$.$ yds$.$

Wood $650$ linear ft$.$

Filler $300$ cu$.$ ft$.$

Springs $540$ units

Finished products:

King $80$ units

Prince $35$ units

d$.$ Direct materials used in production:

In manufacture of King:

Fabric $6\mathrm{.}0$ sq$.$ yds$.$ per unit of product

Wood $38$ linear ft$.$ per unit of product

Filler $4\mathrm{.}2$ cu$.$ ft$.$ per unit of product

Springs $16$ units per unit of product

In manufacture of Prince:

Fabric $4\mathrm{.}0$ sq$.$ yds$.$ per unit of product

Wood $26$ linear ft$.$ per unit of product

Filler $3\mathrm{.}4$ cu$.$ ft$.$ per unit of product

Springs $12$ units per unit of product

e$.$ Anticipated purchase price for direct materials:

Fabric $$12\mathrm{.}00$ per sq$.$ yd$.$

Wood $7\mathrm{.}00$ per linear ft$.$

Filler $$3\mathrm{.}00$ per cu$.$ ft$.$

Springs $4\mathrm{.}50$ per unit

f$.$ Direct labor requirements:

King:

Framing Department $1\mathrm{.}2$ hrs$.$ at $$12$ per hr$.$

Cutting Department $0\mathrm{.}5$ hr$.$ at $$14$ per hr$.$

Upholstery Department $0\mathrm{.}8$ hr$.$ at $$15$ per hr$.$

Prince:

Framing Department $1\mathrm{.}0$ hr$.$ at $$12$ per hr$.$

Cutting Department $0\mathrm{.}4$ hr$.$ at $$14$ per hr$.$

Upholstery Department $0\mathrm{.}6$ hr$.$ at $$15$ per hr$.$