Micro Products Inc. has developed a very powerful electronic calculator. Each calculator requires three small chips that cost $3 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for year 2 and for the first quarter of year 3, as shown below: Budgeted production, in calculators First 6e, Year 2 Second Third 15e,eee Year 3 First 80,000 Fourth 100,000 90,00 The chip used in production of the calculator is sometimes hard to get so it is necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of chips at the end of a quarter must be equal to 20% of the following quarter's production needs. A total of 36,000 chips will be on hand to start the first quarter of year 2. Required: Prepare a direct materials purchases budget for chips, by quarter and in iptal, for year 2. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total Micro Products, Inc Direct Materials Budget - Year 2 Quarter First Second Third Required production in calculators Number of chips por calculator Production needs chips Fourth Year Total needs 0 0 Required purchases chips Total cost of purchases The manufacturing division manager of Davison Enterprises has submitted the following production forecast (in units) for each quarter of the next fiscal year. The plant produces seats for motorcycles: Units to be produced First Quarter 10,000 Second Quarter 8, see Third Quarter 9,000 Fourth Quarter 9,800 Each unit requires 0.50 direct labour-hours, and employees are paid $15 per hour Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units. Davison Enterprises Direct Labour Budget First Quarter Second Quarter Third Quarter Fourth Quarter Year res Units to be produced Direct labour time per unit (hours) Total direct labour hours needed Direct labour cost per hour Total direct labour cost 2. Prepare the company's direct labour budget for the next fiscal year, assuming that the direct labour workforce is not adjusted each quarter. Instead, assume that the company's direct labour workforce consists of permanent employees who are guaranteed to be paid for at least 4,500 hours of work each quarter. If the number of required direct labour-hours is less than this number, the workers are paid for 4,500 hours anyway. Any hours worked in excess of 4,500 hours in a quarter are paid at a rate of 1.5 times the normal hourly rate for direct labour Davison Enterprises Direct Labour Budget First Quarter Second Quarter Third Quarter Fourth Quarter Year 0 0 0 0 0 Total direct labour hours needed Regular hours paid Overtime hours paid Wages for regular hours Overtime wagos Total direct labour cost 0 0 0 $ 0 $ 0 $ 0$