Problem 2. Preparing Master budgets UBS Company, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March). The managers of the different departments have provided the following information: The Sales Manager has projected the following sales: - January 6,000 units - February 5,000 units - March 6,000 units - Projected selling price is $40.00/unit Your Production Manager gave the following information: - Ending Inventory is to be 20% of next month's production need rounded to the nearest 10. - April's Projected Sales 5.500 units, May 11250 units - December 20X5 Ending Inventory was 1.000 units. The Manufacturing Manager has estimated the following: - Each unit will require 4 grams of material - Material in Ending Inventory is 20% of next month's needs - December's Ending Material Inventory was 4,800 g - Project cost of material: $2.50/gram The Personnel Manager has estimated that Direct Labor will be projected at: - 0.75 hours of Direct Labor per unit - Direct Labor Cost: $8.50/hour The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: - Variable Overhead Rate to be $8 per Direct Labor hours - Fixed Overhead Rate to be $3,000 per month The Accounting Department Manager has provided the following information: Selling and Administrative Expenses are projected to be a monthly cost of: - Salaries S6,000 - Rent $1,500 - Advertising S1,100 Telephone $300 Other $500 For the operating budget, you are expected to prepare the following: Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Manufacturing Overhead Budget Selling & Administrative Expenses Budget