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Problem 1: Production Planning (20 points) Ultimate Statue Company makes and sells artistic statues that can be used as home and office decorations. You are

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Problem 1: Production Planning (20 points) Ultimate Statue Company makes and sells artistic statues that can be used as home and office decorations. You are responsible for preparing the master budget and have accumulated the following information for 2018. July 12,000 November 11,000 September 10,000 August 14,000 October 11,000 Estimated unit sales Sales price per unit $50.00 $ 47.50 $ 47.50 $ 47.50 $47.50 Direct labor hours per unit 2.0 2.0 1.5 1.5 1.5 Wage per direct labor hour $8.00 $ 8.00 $ 8.00 $ 9.00 $9.00 USC has a labor contract that calls for a wage increase to $9.00 per hour on October 1. In an effort to offset this cost, new labor-saving machinery has been installed and will be fully operational by September 1. USC expects to begin the year with the appropriate number of frames on hand to support its continuing policy. The policy requires the company to carry month end inventory equal to 100 % of the next month's sales (e.g, February if this is January) plus 40 % of the following month's sales (e.g, March if this is January). Required: In the appropriate section of the Answer Book, please provide: a) The company's planned Total Finished Goods Reguired (i., total needed to support company operations and management risk preferences) for July, August and September in units. b) The company's planned Finished Goods Production (i..., to be made) for July, August and September in units c) The company's planned Total Direct Labor Hours Required for July, August and September. d) The company's planned Cost of Direct Labor for July, August and September. e) A short impact analysis of the information you develloped regarding the company's production plan for the first quarter of next year. Include any additional information you feel is relevant to your analysis

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