Labor Cost The budget director of Royal British 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 March is summarized as follows: a. Estimated sales of William and Kate chairs for March by sales territory: Eastern Domestic William 7.500 units at $800 per unit 6,000 units at $650 per unit Western Domestic Kate William 6.000 units at $700 per unit Kate 5,000 units at $550 per unit International: William 2,500 units at $600 per unit Kate 1,000 units at $350 per unit b. Estimated Inventories at March 13 Direct materials Finished products Fabric 5,500 sq yds William 1,500 units Wond 1 linnat Kata 200 Direct materials: Fabric Finished products: William 5,500 sq. yds. 13,700 lineal ft. 1,500 units Wood Kate 300 units Filler 3,800 cu.ft. Springs 3,500 units c. Desired inventories at March 31: Finished products: Direct materials: Fabric Wood 9,000 sq yds William 2,000 units 20,000 lineal ft. Kate 900 units Filler Springs 5,000 cu. ft. 7,500 units d. Direct materials used in production: In manufacture of William: Fabric 4.0 sq yds per unit of product Wood 16 lineal ft. per unit of product Springs 14 units per unit of product In manufacture of Kate: Fabric 2.5 sq. yds. per unit of product Wood 12 lineal ft. per unit of product Filler 3.2 cu. ft. per unit of product Springs 10 units per unit of product e. Anticipated purchase price for direct materials: Fabric $9.00 per sq, yd, Filler $1.50 per cu. ft. Wood 5.00 per lineal ft. Springs 2.00 per unit Check My Work Total Total units to be purchased Unit price Total direct materials to be purchased 00000 bbon k 4. Prepare a direct labor cost budget for March Royal British Furniture Company Direct Labor Cost Budget For the Month Ending March 31 Framing Department Cutting Department Upholstery Department Total Hours required for production: William Kate Total bn bmo Hourly rate DO Total direct labor cost Previous Next Check My Work o te 40F Partly sunny 5:22 AM 12/10/2011