Nonmonetary incentives, 480, rewards that include job enrichment, increased responsibility and autonomy, and recognition programs Operating budgets, 458, budgets that describe the income-generating activities of a firm, sales, production, and finished goods inventories, ending with the budgeted income statement. Overhead budget, 464, a budget that shows the expected cost of all production costs other than direct materials and direct labor. Participative budgeting, 480, type of budgeting that allows subordinate managers consider- able say in how the budgets are established. Performance report, 477, a form that compares actual costs with budgeted costs. Production budget, 461, a budget that details the number of units of each product to be produced in the coming year, in order to satisfy sales and desired ending inventory needs. Pseudoparticipation, 481, when top management has total control of the budgeting process, allowing only superficial participation from lower-level managers. Sales budget, 459, a budget that describes expected sales in units and dollars for every product or service sold. Selling and administrative expenses budget, 466, a budget that shows the expected costs for nonmanufacturing costs of selling and administration. Static budget, 477, a budget created in advance for a particular level of activity. Strategic plan, 456, a plan that plots a direction for an organization's future activities and oper- ations; it generally covers at least 5 years. The overall strategy is then translated into the long- and short-term objectives that form the basis of the budget. n13 1. Select Operational Budgets Joven Products produces coat racks. The projected sales for the first quarter of the coming year and the beginning and ending inventory data are as follows: Unit sales Unit price Units in beginning inventory Units in targeted ending inventory 100,000 $15 8,000 12.000 The coat racks are molded and then painted. Each rack requires 4 pounds of metal, which costs $2.50 per pound. The beginning inventory of materials is 4.000 pounds. Joven Products wants to have 6,000 pounds of metal in inventory at the end of the quarter. Each rack produced re- quires 30 minutes of direct labor time, which is billed at $14 per hour. Required: 1. Prepare a sales budget for the first quarter. 2. Prepare a production budget for the first quarter. 3. Prepare a direct materials purchases budget for the first quarter. 4. Prepare a direct labor budget for the first quarter