rcises Part 2 of 6 Points: 3.89 of 10 Save McGrath Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Jangles, the controller, is responsible for preparing McGrath master budget and has accumulated the following information for 2021: (Click the icon to view some of the financial information.) (Click the icon to view additional information) Read the requirements McGrath Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2021 January February March Quarter Budgeted sales (units) 11,000 12,000 9.000 Add target ending finished goods inventory (units) 16,500 14,000 15.000 Total requirements (units) 27,500 26,000 24,000 Deduct beginning finished goods inventory (units) 16,500 16,500 14,000 Units to be produced 11,000 9.500 10,000 3.5 3.5 1.0 Direct manufacturing labor-hours per unit 38.500 33.250 10,000 Total hours of direct manufacturing labor time needed Clear all Check answ Data table 2021 January February March April May Estimated sales in units 11,000 12,000 9,000 10,000 10,000 Selling price $ 55.00 $ 52.00 $ 52.00 $ 52.00 $ 52.00 Direct manufacturing labor-hours per unit 3.5 3.5 1.0 1.0 1.0 Wage per direct manufacturing labor-hour 8.00 $ 8.00 $ 8.00 $ 13.00 $ 13.00 Print Done LIVIS In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.50 per hour, worker's compensation insurance of $0.20 per hour, employee medical insurance of $0.30 per hour, and Social Security taxes. Assume that as of January 1, 2021, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by McGrath on its direct manufacturing employees is treated as a direct manufacturing labor cost. McGrath has a labor contract that calls for a wage increase to $13 per hour on April 1, 2021. New labor-saving machinery has been installed and will be fully operational by March 1, 2021. McGrath expects to have 16,500 frames on hand at December 31, 2020, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales