LC PB8-1 Preparing Operating Budgets Beach Wind Company manufactures kites that sell for $20 each. Each kite requires 2 yards of light- weight canvas, which costs $0.60 per yard. Each kite takes approximately 30 minutes to build, and the labor rate averages $8 per hour. Beach Wind has the following inventory policies: Ending finished goods inventory should be 30 percent of next month's sales. Ending raw materials inventory should be 20 percent of next month's production. Expected kite sales for the upcoming months are: March Aprill May June July August 850 700 650 720 830 760 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $9,000 ($750 per month) for expected production of 9,000 units for the year. Selling and administrative expenses are estimated at $820 per month plus $0.75 per unit sold