Question 1 Pina & Company makes and sells high-quality glare filters for microcomputer monitors. John Crane, controller, is responsible for preparing Pina's master budget and has assembled the following data for 2016. The direct labour rate includes wages and all employee-related benefits and the employer's share of Canada Pension Plan (CPP) and Employment Insurance (EI). Labour-saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labour wages that is included in the direct labour rate. Pina expects to have 14,000 glare filters in inventory at December 31, 2015, and has a policy of carrying 50% of the following month's projected sales in inventory. Estimated unit sales Sales price per unit Direct labour hours per unit Direct labour hourly rate Direct materials cost per unit 2016 January February March April 28,000 32,000 24,000 26,000 $ 80 $ 80 $ 75$ 75 5.0 5.0 3.5 3.5 $ 13 $ 13 14 S 14 $ 8 $ 8 $ 8 $ 8 (a) Prepare the following budgets for Pina & Company for the first quarter of 2016. Be sure to show supporting calculations: (1) production budget in units, (2) direct labour budget in hours, (3) direct materials budget, and (4) sales budget. (Round answers to o decimal places.) (1) Production budget (units) January February March Quarter (2) Direct labour budget (hours) January February March Total Units to be produced Direct labour hours per unit Total labour budget (hours) (3) Direct materials budget (dollars) January February March Total Units to be produced Cost per unit $ Total direct material cost $ $ $ 1 (4) Sales budget (dollars) January February March Total Sales units Sales price per unit $ Total sales revenue budget