Mike's Bikes makes and sells highquality replacement gears for mountain bikes. Mike Speedway, controller, is responsible for preparing the master budget and has assembled the following data for 2016. The direct labour rate includes wages and all employee-related benefits and the employer's share of Canada Pension Plan (CPP) and Employment Insurance (EI). Labour-saving machinery will be fully operational by February. Also, as of March 1, the company's union contract calls for an increase in direct labour wages that is included in the direct labour rate. Mike's Bikes expects to have 94 gear units in inventory at December 31, 2015, and has a policy of carrying 5% of the following month's projected sales in inventory during the first quarter of the year. 2016 January February March April Estimated unit sales 752 940 1,880 2,256 Sales price per unit $40 $40 $35 $35 Direct labour hours per unit 0.75 0.50 0.50 0.50 Direct labour hourly rate $20 $20 $22 $22 Direct materials cost per unit $4 $4 $4 Direct materials per gear 0.30 kg 0.30 kg 0.30 kg 0.30 kg Your answer is partially correct. Try again. Prepare the following budgets for Mike's Bikes for the first quarter of 2016. Be sure to show supporting calculations: (1) Sales Budget. January February March Total TSales 752 940 1 1880 3572 Tsales price per unity 40 'D | | Sales Revenue 30080 37600 65800 133480