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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
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 2020. Estimated unit sales Sales price per unit Direct labor hours per unit Wage per direct labor hour January 10,900 $50.20 2.3 $8 February 11.900 $48.00 23 $8 March 8,200 $48.00 1.5 $8 April 8.700 $48.00 15 $9 May 8.100 $48.00 1.5 $9 Lowell has a labor contract that calls for a wage increase to 89 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 19.230 frames or hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 70% of the second following month's sales. Prepare a production hodget for Lomel Company by month and for the first quarter of the year, LOWELL COMPANY Production Budget Jan Feb Total Prepare a direct later budget for Lowel Company by month and for the first quarter of the year. The director budget should include direct later hours. (Roundbredt for hours per unit awer to 1 deck LOWELL COMPANY Direct Feb To
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