Homework: Week 2 Exercises (Cp. 6,21] Save Score: 0 of 10 pts 3 of 6 (3 complete) HW Score: 20%, 4 of 20 pts E6-29 (similar to) Question Help Peterson Company makes and sells artistic frames for pictures of weddings, graduations, and other special events Ron Kam, the controller, is responsible for preparing Peterson's master budget and has accumulated the following information for 2018 Click the icon to view some of the financial information) Click the icon to view additional information) Read the rements Requirement 1. Prepare a production budoit and a direct manufacturing labor cost budget for Peterson Company by month and to the test quarter of 2018 You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor hours and show the details for each labor cost category Start the schedule by preparing the production budget and calculating the total hour of direct manufacturing labor time needed for the three months in the quarter then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct mandacturing labor by month, then quarter the the direct manufacturing labor hun per unit to one decimal place, XX Do not round interim calculations, and then enter all amounts in the budget other than the dred manufacturing labor hours per unit to the nearest whole number) Peterson Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2018 January February March Budgeted sales (units) 17.000 18.000 8000 22000 14000 10000 Add targetending finished goods inventory (units) Enter any number in the edit fields and then click Check Answer 5 Clear A remaining Check Answer Peterson Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kern, the contro information for 2018: (Click the icon to view some of the financial information.) (Click the icon to view additional information.) Read the requirements Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2018 January February March Budgeted sales (units) 17,000 18,000 8,000 22000 14000 18000 Add target ending finished goods inventory (units) Total requirements (units) 39000 32000 26000 22000 22000 Deduct beginning finished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Enter any number in the edit fields and then click Check Answer i Data Table 2018 January February March 17,000 18,000 8,000 $ 58.00 $ 52.00 $ 52.00 $ 2.5 2.5 2.0 $ 8.00 $ 8.00 $ 8.00 $ Estimated sales in units Selling price Direct manufacturing labor-hours per unit Wage per direct manufacturing labor-hour April 12.000 52.00 $ 2.0 May 12,000 52.00 2.0 12.00 $ 12.00 Print Done In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.40 per hour, worker's compensation insurance of $0.10 per hour, employee medical insurance of $0.50 per hour, and Social Security taxes. Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Peterson on its direct manufacturing employees is treated as a direct manufacturing labor cost. Peterson has a labor contract that calls for a wage increase to $12 per hour on April 1. 2018. New labor-saving machinery has been installed and will be fully operational by March 1. 2018. Peterson expects to have 22.000 frames on hand at December 31, 2017, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales