Peterson Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Bahar, the controller, is responsible for preparing Peterson's master budget and has accumulated the following information for 2021: (Click the icon to view some of the financial information.) (Click the icon to view additional information.) Read the requirements. C Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Peterson Company by month and for the first quarter of 2021. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then enter all amounts in the budget [other than the direct manufacturing labor-hours per unit] to the nearest whole number.) Peterson Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2021 Budgeted sales (units) January February March Quarter Add target ending finished goods inventory (units) Total requirements (units) Deduct beginning finished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Direct manufacturing labor costs: Wages Pension contributions Workers' compensation insurance Employee medical insurance Social Security tax (employer's share) Total direct manufacturing labor costs Requirement 2. What actions has the budget process prompted Peterson's management to take? (Select all that apply.) Requirement 2. What actions has the budget process prompted Peterson's management to take? (Select all that apply.) Peterson's management would look for ways to Requirement 3. How might Peterson's managers use the budget developed in requirement 1 to better manage the company? Peterson's management should work with employees to Data table 2021 January February March April May Estimated sales in units 10,000 17,000 7,000 9,000 9,000 Selling price $ 54.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 Direct manufacturing labor-hours per unit 3.5 3.5 1.0 1.0 1.0 Wage per direct manufacturing labor-hour $ 8.00 $ 8.00 $ 8.00 $ 12.00 $ 12.00 Print Done More info - In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.40 per hour, worker's compensation insurance of $0.20 per hour, employee medical insurance of $0.30 per hour, and Social Security taxes. Assume that as of January 1, 2021, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Peterson on its direct manufacturing employees is treated as a direct manufacturing labor cost. Peterson has a labor contract that calls for a wage increase to $12 per hour on April 1, 2021. New labor-saving machinery has been installed and will be fully operational by March 1, 2021. Peterson expects to have 20,500 frames on hand at December 31, 2020, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales. Print Done