Pharoah Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022: January February March April May Estimated unit sales 11,000 11,000 8,000 10,000 8,000 Sales price per unit $55.00 $52.30 $52.30 $52.30 $52.30 Direct labour hours per unit 2.00 2.00 1.50 1.50 1.50 Direct labour cost per hour $8.00 $8.00 $8.00 $9.00 $9.00 Pharoah has a labour contract that calls for a wage increase to $9.00 per hour on April 1. It has installed new labour-saving machinery. which will be fully operational by March 1. Pharoah expects to begin the year with 16,500 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales.