Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2017.

		January		February		March		April		May
Estimated unit sales		10,400		11,500		8,900		8,700		8,500
Sales price per unit		$50.90		$48.30		$48.30		$48.30		$48.30
Direct labor hours per unit		2.2		2.2		1.5		1.5		1.5
Wage per direct labor hour		$8.00		$8.00		$8.00		$9.00		$9.00

Lowell has a labor contract that calls for a wage increase to $9.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lowell expects to begin the year with 16,150 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following months sales, plus 50% of the second following months sales.

Prepare a production budget for Lowell Company by month and for the first quarter of the year.

LOWELL COMPANY Production Budget For the Year Ending March 31, 2017For the Quarter Ending March 31, 2017March 31, 2017
		Jan		Feb		Mar		Total
Required Production UnitsSales in UnitsDesired Ending InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsTotal NeedsTotal Hours NeededRate Per HourDirect Labor Hours Per UnitDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Direct LaborCost Per PoundBeginning Inventory
AddLess: Total Cost of Direct Materials PurchasesRate Per HourTotal Hours NeededBeginning InventorySales in UnitsDesired Ending InventoryDesired Ending Direct MaterialsTotal Materials RequiredDirect Materials PurchasesTotal NeedsTotal Direct LaborBeginning Direct MaterialsRequired Production UnitsDirect Labor Hours Per UnitCost Per Pound
Direct Labor Hours Per UnitTotal Materials RequiredSales in UnitsTotal Direct LaborCost Per PoundTotal NeedsRate Per HourDirect Materials PurchasesTotal Hours NeededBeginning InventoryRequired Production UnitsTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsDesired Ending InventoryDesired Ending Direct Materials
AddLess: Beginning InventoryTotal Direct LaborCost Per PoundTotal NeedsBeginning Direct MaterialsSales in UnitsTotal Hours NeededRate Per HourDesired Ending Direct MaterialsTotal Materials RequiredDesired Ending InventoryDirect Materials PurchasesRequired Production UnitsTotal Cost of Direct Materials PurchasesDirect Labor Hours Per Unit
Rate Per HourTotal Hours NeededTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Direct LaborDesired Ending InventoryDirect Labor Hours Per UnitDesired Ending Direct MaterialsTotal NeedsSales in UnitsBeginning InventoryRequired Production UnitsDirect Materials PurchasesBeginning Direct MaterialsCost Per Pound

eTextbook and Media

Prepare a direct labor budget for Lowell Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.)

LOWELL COMPANY Direct Labor Budget For the Quarter Ending March 31, 2017For the Year Ending March 31, 2017March 31, 2017
		Jan		Feb		Mar		Total
Beginning InventoryTotal Hours NeededDirect Labor Hours Per UnitProduction in UnitsTotal Materials RequiredDesired Ending InventoryDirect Materials PurchasesCost Per PoundDesired Ending Direct MaterialsTotal NeedsRate Per HourBeginning Direct MaterialsTotal Cost of Direct Materials PurchasesSales in UnitsTotal Direct Labor
Sales in UnitsRate Per HourTotal Materials RequiredDesired Ending InventoryCost Per PoundTotal NeedsDirect Labor Hours Per UnitTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsTotal Direct LaborBeginning InventoryProduction in UnitsDesired Ending Direct MaterialsTotal Hours NeededDirect Materials Purchases
Direct Materials PurchasesTotal Direct LaborTotal NeedsSales in UnitsDesired Ending InventoryDesired Ending Direct MaterialsProduction in UnitsBeginning Direct MaterialsCost Per PoundTotal Hours NeededDirect Labor Hours Per UnitBeginning InventoryTotal Cost of Direct Materials PurchasesRate Per HourTotal Materials Required
Production in UnitsRate Per HourBeginning Direct MaterialsTotal NeedsDesired Ending InventoryTotal Hours NeededDirect Materials PurchasesSales in UnitsBeginning InventoryDirect Labor Hours Per UnitTotal Direct LaborTotal Materials RequiredDesired Ending Direct MaterialsTotal Cost of Direct Materials PurchasesCost Per Pound		$		$		$
Desired Ending Direct MaterialsTotal NeedsTotal Materials RequiredSales in UnitsDesired Ending InventoryBeginning InventoryDirect Materials PurchasesCost Per PoundProduction in UnitsDirect Labor Hours Per UnitBeginning Direct MaterialsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededRate Per Hour		$		$		$		$