Indigo Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has

accumulated the following information for $2022$:

Indigo has a labour contract that calls for a wage increase to $$8\mathrm{.}00$ per hour on April $1.$ It has installed new labour$-$saving machinery,

which will be fully operational by March $1.$

Indigo expects to begin the year with $16,500$ frames on hand and has a policy of carrying an end$-$of$-$month inventory of $100\%$ of the

following month's sales, plus $50\%$ of the next month's sales.

$($a$)$ Prepare a production budget and a direct labour budget for Indigo by month and for the first quarter of the year. The direct labour

budget should include direct labour hours and show the detail for each direct labour cost category. $($Round DLH per unit and labor rate

per hour to $2$ decimal places, e$.$g$.12\mathrm{.}25$ and all other answers to $0$ decimal places, e$.$g$.125.)$

INDIGO COMPANY

Production Budget

For the quarter ending March $31,2022$

Jan

Feb

Mar

Total

INDIGO COMPANY

Direct Labour Budget

For the quarter ending March $31,2022$

Jan

Feb

Mar