Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Laghari Company makes and sells high-quality glare filters for microcomputer monitors. John Tanaka, controller, is responsible for preparing Laghari's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Laghari expects to have 6,000 glare filters in inventory on December 31 of the current year, and has a policy of carrying 30 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 36,800 34,400 40,400 40,800 Sales price per unit $83 $83 $76 $76 Direct labor hours per unit 2.80 2.80 2.40 2.40 Direct labor hourly rate $19 $19 $20 $20 Direct materials cost per unit $10 $10 $10 $10 1. Prepare the following monthly budgets for Laghari Company for the first quarter of the coming year. a. Production budget in units: Laghari Company Production Budget (units) For the First Quarter of the Coming Year Unit sales Desired ending inventory Total units required Less: Beginning inventory Units produced January February March Total b. Direct labor budget in hours: Round your answers to two decimal places, if required. Laghari Company Direct Labor Budget (hours) For the First Quarter of the Coming Year Units produced Direct labor hours per unit Total labor budget (hours) January February March Total c. Direct materials cost budget: Laghari Company Direct Materials Cost Budget For the First Quarter of the Coming Year January February March Total Units produced Cost per unit Total direct materials d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements. Unit sales Laghari Company Sales Budget (dollars) For the First Quarter of the Coming Year Unit selling price Total sales revenue January February March Total 2. Calculate the total budgeted contribution margin for Laghari Company by month and in total for the first quarter of the coming year. (CMA adapted) Laghari Company Budgeted Contribution Margin For the First Quarter of the Coming Year Sales revenue Direct labor cost Materials cost Contribution margin January February March Total