N AWN A B C D E F G . J K L M 1 E9.10 (LO 2, 3), AP 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 2022. 2 January February March April May 3 Estimated unit sales 12,000 14,000 13,000 11,000 11,000 Unit selling price $50.00 $47.50 $47.50 $47.50 $47.50 5 Direct labor hours per unit 2 2 1.5 1.5 1.5 6 Direct labor cost per hour $8.00 $8.00 $8.00 $9.00 $9.00 7 8 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. 9 10 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. 11 12 Instructions 13 14 Complete the production budget and the direct labor budget, including direct labor hours for Lowell Company by month and for the first quarter of the year. 15 16 LOWELL COMPANY LOWELL COMPANY 17 Production Budget Direct Labor Budget 18 For the Quarter Ending March 31, 2022 For the Quarter Ending March 31, 2022 19 20 Jan Feb Mar Total Jan Feb Mar Total 21 Sales in units Production in units 22 Plus: desired ending inventory Direct labor hours per unit 23 Total needs Total hours needed 24 Less: beginning inventory Direct labor cost per hour 25 Required production units Total direct labor 26 27