la question Time left 0:23:40 2021 JanuaryFebruary March April May Estimated sales in units 12.000 16.000 9,00010.000 10000 Selling price $55.00 $51.50$51.50$51.50$51.50 Direct manufacturing labor-hours per unit 3.0 3.0 2.5 2.5 2.5 Wage per direct manufacturing labor-hour $16.00 $16.00$16.00$17.00$17.00 In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.80 per hour, worker's compensation insurance of $0.40 per hour, employee medical insurance of $0.50 per hour, and Social Security taxes. Assume that as of January 1, 2021, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Rashid on its employees is treated as a direct manufacturing labor cost. Rashid has a labor contract that calls for a wage increase to $18per hour on April 1, 2021. New laborsaving machinery has been installed and will be fully operational by March 1, 2021. Rashid expects to have 20,500 frames on hand at December 31. 2021, 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. Required: 1. Prepare a production budget and a direct manufacturing labor budget for Rashid Company by month and for the first quarter of 2021. You may combine both budgets in one schedule. The direct manufacturing labor budget should include labor- hours and show the details for each labor cost category: (7 marks) 2. What actions has the budget process prompted Rashid's management to take? (1.5marks) 3. How might Rashid's managers use the budget developed in requirement 1 to better manage the company? (1.5 marsk) ere to search