Operating Budget, Comprehensive Analysis Septem 9-29 ell Manufacturing produces dashboards used in the production of automobiles. The dash- assembly is sold to a nearby automobile manufacturing plant. Projected sales in units for OBJEC the coming five months follow: January February March April May 80,000 90,000 95,000 96,000 92,000 The following data pertain to production policies and manufacturing specifications followed by Hopewell Manufacturing: a. Finished goods inventory on January 1 is 38,000 units, each costing S274,69. The desired ending inventory for each month is 75 percent of the next month's sales The data on materials used are as follows: b. Unit Cost (S) 16 Direct MaterialsPer-Unit Usage (kilograms) Plastix Components 12 4 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to produce 40 percent of that month's estimated sales. This is exactly the amount of materials on hand on January 1. Derhead each month is estimated using a flexible budget formula.(Note: Activity is measured in direct labour hours.) The direct labour used per unit of output is two hours. The average direct labour cost per hour is $18.50. Continued) Operating Budget, Comprehensive Analysis Septem 9-29 ell Manufacturing produces dashboards used in the production of automobiles. The dash- assembly is sold to a nearby automobile manufacturing plant. Projected sales in units for OBJEC the coming five months follow: January February March April May 80,000 90,000 95,000 96,000 92,000 The following data pertain to production policies and manufacturing specifications followed by Hopewell Manufacturing: a. Finished goods inventory on January 1 is 38,000 units, each costing S274,69. The desired ending inventory for each month is 75 percent of the next month's sales The data on materials used are as follows: b. Unit Cost (S) 16 Direct MaterialsPer-Unit Usage (kilograms) Plastix Components 12 4 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to produce 40 percent of that month's estimated sales. This is exactly the amount of materials on hand on January 1. Derhead each month is estimated using a flexible budget formula.(Note: Activity is measured in direct labour hours.) The direct labour used per unit of output is two hours. The average direct labour cost per hour is $18.50. Continued)