Profit Planning Activity Oracle Company is a high-technology organization that produces a mass-storage system. The design of Oracle's system is unique and represents a breakthrough in the industry. The units Oracle produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (2023). The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information: Fourth-quarter sales for 2022 are 55,000 units. Unit sales by quarter (for 2023) are projected as follows: o First quarter 65,000 o Second quarter 70,000 o Third quarter 75,000 o Fourth quarter 90,000 The selling price is P400 per unit. All sales are credit sales. Oracle collects 85% of all sales within the quarter they are realized; the other 15% is collected in the following quarter. There are no bad debts. Each mass storage unit uses five hours of direct labor and three units of direct materials. Laborers are paid P10 per hour, and one unit of direct materials costs P80 There are 65,700 units of direct materials in the beginning inventory as of January 1, 2023. At the end of each quarter, Oracle plans to have 30% of the direct materials needed for next quarter's unit sales. Oracle will end the year with the same amount of direct materials found in this year's beginning inventory. Oracle buys direct materials on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half is paid for in the following quarter. Wages and salaries are paid on the 15th and 30th of each month. Fixed overhead totals P1 million each quarter. Of this total, P350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate is computed by dividing the year's total fixed overhead by the year's budgeted production in units. Variable overhead is budgeted at P6 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred.