Required: 1. Prepare a production budget and a direct-labor budget for Spif'fy Shades Corporation by month and for the rst quarter of 20x1. (Round "Direct-labor hours per unit" to 2 decimal places.) Sales (units) Units to be produced Total hours of direct labor time needed Total needs Directlabor costs: Wages Pension contributions Workers' compensation insurance Employee medical insurance Employer's social security Total directlabor cost 2. For each item used in the rm's production budget and directlabor budget, select the other components of the master budget (except for nancial statement budgets) that also, directly or indirectly, would use these data. [You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.} a. Sales data: El Selling and administrative expense budget El Productionoverhead budget El Directmaterial budget El Cash budget El Costofgoodssold budget El Sales budget El Cash disbursements budget b. Production data: Selling and administrative expense budget Direct-material budget Cost-of-goods-sold budget Production-overhead budget Cash budget Cash disbursements budget Sales budgetc. Direct-labor-hour data: Selling and administrative expense budget Production-overhead budget Direct-material budget Cash budget Cost-of-goods-sold budget Sales budget Cash disbursements budgetd. Direct-labor cost data: Selling and administrative expense budget Production-overhead budget Direct-material budget Cash budget Sales budget Cost-of-goods-sold budget Cash disbursements budget3. Prepare a production overhead budget for each month and for the first quarter. Shipping and handling Purchasing, malenal handling, and inspection Other overhead Total production overhead Required information [T he foiiowing information applies to the questions dispiayed below] Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest. controller, is responsible for preparing the company's master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 4.0 hours to 3.75 hours. Laborrelated costs include pension contributions of $1.05 per hour. workers' compensation insurance of $0.75 per hour. employee medical insurance of $3 per hour, and employer contributions to Social Security equal to 8.00 percent of direct Iabor wages. The cost of employee benets paid by the company on its employees is treated as a directlabor cost. Spiffy Shades Corporation has a labor contract that calls for a wage increase to $15.00 per hour on April 1. 20x1. Management expects to have 25,000 frames on hand at December 31, 20x0, and has a policy of carrying an endofmonth inventory of 100 percent of the following month's sales plus 50 percent ofthe second following month's sales. These and other data compiled by Demarest are summarized in the following table. January February March April May Direct-labor hours per unit 4.6 4.6 3.?5 3.?5 3.75 Wage per direct-labor hour $ 13.66 $ 13.66 $ 13.66 $ 15.66 $ 15.66 Estimated unit sales 16J999 19,999 14, 999 151999 15,999 Sales price per unit $ 56.66 $ 4?.56 $ 4?.56 $ 4?.56 $ 47.56 Production overhead: Shipping and handling (per unit sold) $ 5.66 $ 5.66 $ 5.66 $ 5.66 $ 5.66 Purchasing, material handling, and inspection (per unit produced) $ 6.66 $ 5.66 $ 6.66 $ 6.66 $ 6.66 Other production overhead (per $ direct-labor hour) 4.66 $ 4.66 $ 4.66 $ 4.66 $ 4.66