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 February March April January 12,000 $50.00 2.0 $8.00 May Estimated unit sales Sales price per unit Direct labor hours per unit Wage per direct labor hour 14,000 13,000 11,000 11,000 $47.50 $47.50 $47.50 $47.50 1.5 $8.00 $8.00 $9.00 $9.00 2.0 1.5 1.5 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 17,600 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales Prepare a production budget for Lowell Company by month and for the first quarter of the year. LOWELL COMPANY Production Budget For the Quarter Ending March 31, 2017 Jan Feb Mar Total Sales in Units 12000 14000 13000 39000 Add Desired Ending Inventory 19200 17400 15400 15400 Total Needs 31200 31400 28400 54400 Less Beginning Inventory 17600 19200 17400 17600 Required Production Units 13600 12200 11000 36800 (b) 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 Jan Feb Mar Total