Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin

Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner'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. Greiner expects to have 5,900 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows:

JanuaryFebruaryMarchAprilEstimated unit sales37,40035,40040,60038,200Sales price per unit$83$83$76$76Direct labor hours per unit2.902.902.602.60Direct labor hourly rate$17$17$19$19Direct materials cost per unit$9$9$9$9