Joshua Hill, Oriole & Hill Fabricators' production manager, has just received the company's sales budget for the first quarter: January February Budgeted unit sales 18,200 Budgeted ending inventory Total units required 7,098 25,298 Beginning inventory Budgeted production 5,096 20,202 6,370 41,860 7,098 6,370 34,762 30,758 March Quarter 35,490 31,850 85,540 5,278 5,278 37,128 90,818 5,096 85,722 Its manufacturing overhead budget for the first quarter is as follows: January February March Quarter DLH worked 5,051 8,691 7,690 21,432 VOH per DLH $0.70 $0.70 $0.70 $0.70 Budgeted VOH 3,536 6,084 5,383 15,003 Budgeted FOH 102,375 102,375 102,375 307,125 Total Budgeted MOH 105,911 108,459 107,758 322,128 Noncash MOH items Depreciation 27,300 27,300 27,300 81,900 Total Cash MOH cost $78,611 $81,159 $80,458 $240,228 He also has received the direct materials purchases budget and direct labor budget which were as follows: Budgeted production January 20,202 February 34,762 March 30,758 Quarter 85,722 April 25,298 Standard pounds per unit 5 5 Production needs 101,010 173,810 5 153,790 X 5 428,610 5 126,490 Budgeted ending inventory 17,381 15,379 12,649 12,649 Total DM required (lbs.) 118,391 189,189 166,439 441,259 Beginning inventory 17,199 17,381 15,379 17,199 Budgeted purchases (lbs.) 101,192 171,808 151,060 424,060