OL P13-1 Sales, production, direct materials purchases, and direct labor cost The budget director of Royal British Furniture Company requests estimates of sales, pro duction, and other operating data from the various administrative units every month. Se- lected information concerning sales and production for March is summarized as follows: a. Estimated sales of William and Kate chairs for March by sales territory: Eastern Domestic William 7,500 units at $800 per unit Kate 6,000 units at $650 per unit Western Domestic William 6,000 units at $700 per unit Kate 5.000 units at $550 per unit International William 2,500 units at $600 per unit Kate 1,000 units at $350 per unit b. Estimated inventories at March 1: 3. Total materials purch $3,89 Direct materials: Fabric 5,500 sq yds. Wood 13,700 lineal ft. Filler 3,800 cu.ft Springs 3.500 units c. Desired inventories at March 31: Finished products: William 1,500 units Kate 300 units Direct materials: Finished products: Fabric 9,000 sq. yds. William 2,000 units Wood 20,000 lineal ft. Kate 900 units Filler 5,000 cu.ft. Springs 7.500 units d. Direct materials used in production: In manufacture of William: Fabric 4.0 sq. yds, per unit of product Wood 16 lineal ft. per unit of product Filler 3.8 cu.ft. per unit of product Springs 14 units per unit of product In manufacture of Kate: Fabric 2.5 sq.yds. per unit of product Wood 12 lineal ft. per unit of product Filler 3.2 cu.ft. per unit of product Springs 10 units per unit of product e. Anticipated purchase price for direct materials: $1.50 per cu.ft. Fabric $9.00 per sq.yd. Springs 2.00 per unit Wood + Filler 5.00 per lineal ft. Chapter 13 Budgeting and Standard Costs f. Direct labor requirements: William: Framing Department 2.5 hrs. at $15 per hr. Cutting Department 1.0 hr. at $12 per hr. Upholstery Department 3.0 hrs. at $16 per hr. Kate: Framing Department 1.5 hrs. at $15 per hr. Cutting Department 0.5 hr. at $12 per hr. Upholstery Department 2.0 hrs. at $16 per hr. Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. 4. Prepare a direct labor cost budget for March