Question
Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following informa-tion for
"Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following informa-tion for 2017.Quarter Units35,00030,000 Estimated unit sales Sales price per unit Direct labor hours per unit Wage per direct labor hour 3 4 Exercises 1093Lowell 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 car-rying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales.January February March 12,000 13,000 $47.50 $50.00 1.5 2.0 $8.00 $8.00 Prepare a direct labor budget.(LO 3)InstructionsPrepare a production budget and a direct labor budget for Lowell Company by month and for the fi rst quarter of the year. The direct labor budget should include direct labor hours"
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