Lexington Company is well known for its high$-$quality mens shoes. It manufactures all of its products in regional facilities throughout North America, trying to source DM locally when possible. Managers in the production area of one of its plants are beginning to work on next years first$-$quarter budgets to ensure theyll have the necessary resources available. Sales are expected to be steady, with $3,500$ pairs of shoes $($one pair is one unit$)$ budgeted in January. February and March have anticipated sales volume of $3,600$ units each, while April will be down slightly to $3,400$ units. In order to prevent stock$-$outs, Lexingtons policy requires $15\%$ of the following months sales be held in ending inventory for all of its shoes. This policy is expected to be met on December $31$ of this year. Additional DL and MOH information is as follows. Standard DL time $0\mathrm{.}50$ hours per unit DL rate $$13\mathrm{.}00$ per DL hour Variable$-$MOH rate $$1\mathrm{.}40$ per DL hour Fixed$-$MOH costs Supervisor salaries $$4,100$ per month Depreciation on plant assets $$7,000$ per month Insurance and taxes $$3,800$ per month Required a$.$ Prepare Lexingtons production budget for Quarter $1$ for this facility. b$.$ Prepare the DL budget for Quarter $1$ for this facility. c$.$ Prepare the MOH budget for Quarter $1$ for this facility, identifying total MOH costs as well as cash outlay amount for MOH. d$.$ In your work, clearly show the connections among these three budgets, identifying which item$($s$)$ from the previous budget$($s$)$ is $($are$)$ needed in the subsequent budgets.

Karen Congo Farmer; Amy Fredin. Cost Accounting: With Integrated Data Analytics, $1$st Edition $($p$.6-46).$ Kindle Edition.