OBJ. 4 PR 22-2B Sales, production, direct materials purchases, and direct labor cost budgets The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows: a. Estimated sales of King and Prince chairs for February by sales territory: 610 units at $780 per unit 750 units at $550 per unit Northern Domestic: King.. Prince Southern Domestic: King... Prince.. International: King... Prince 340 units at $780 per unit 440 units at $550 per unit 360 units at $850 per unit 290 units at $600 per unit Chapter 22 Budgeting 1117 Finished products King Prince 90 units 25 units Finished products: King Prince 80 units 35 units b. Estimated inventories at February 1: Direct materials: Fabric ... 420 sq yds Wood SBO linear it Filler 250 cu.ft Springs 660 units c. Desired inventories at February 28: Direct materials: Fabric 390 sq yds Wood 650 linear ft. Filler 300 cu.ft Springs 540 units d. Direct materials used in production: In manufacture of King: Fabric Wood Filler Springs... In manufacture of Prince: Fabric ... Wood 60 sq yds. per unit of product 38 linear ft. per unit of product 4.2 cu.ft.per unit of product 16 units per unit of product 4.0 sq yds, per unit of product 26 linear ft. per unit of product 3.4 cu.ft. per unit of product 12 units per unit of product Filler $3.00 per cu. ft. $4.50 per unit Springs... e. Anticipated purchase price for direct materials: Fabric $12.00 per sq.yd. Filler Wood $7.00 per linear ft Springs f. Direct labor requirements: King: Framing Department.. Cutting Department Upholstery Department.. Prince: Framing Department... Cutting Department Upholstery Department.. 1.2 hrs. at $12 per hr. 0.5 hr at $14 per hr 0.8 hr. at $15 per hr 1.0 hr. at $12 per hr 0.4 hr. at $14 per hr 0.6 hr. at 515 per hr. Instructions 1. Prepare a sales budget for February 2. Prepare a production budget for February 3. Prepare a direct materials purchases budget for February 4. Prepare a direct labor cost budget for February