Required: Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2017: 1. Revenues budget (in dollars) 2. What questions might the CEO ask the marketing manager when reviewing the revenues budget? Explain briefly. 3. Production budget (in units) 4. Direct material purchases budget (in quantities) 5. Direct material purchases budget (in dollars) 6. Direct manufacturing labor budget (in dollars) 7. Budgeted finished-goods inventory at December 31, 2017 (in dollars) 8. What questions might the CEO ask the production manager when reviewing the production, direct materials, and direct manufacturing labor budgets? 9. How does preparing a budget help Chen Corporation's top management better manage the company?

Revenue and production budgets. (CPA, adapted) The Chen Corporation manufactures a Thingtwo. In July 2016. Chen's budget department gathered the following data to prepa 2017 Projected Sales Product Units Price ThingOne 69,000 $160 ThingTwo 44,000 $258 2017 Inventories in Units Product Jan Target Dec Target ThingOne 24,000 29,000 ThingTwo 7,000 8,000 The following direct materials are used in the two products: Amount Used per Unit Direct Material Unit Thingone Thingtwo A Pound 6 7 B. Pound 4 5 Each 0 3 Projected data for 2017 for direct materials are: Direct Mat Price Invent. Jan. 1 Invent Dec. 31 A $13 36,0000 lb. 38,000 16. B 8 31,000 lb 34.000lb. 7 9.000 lb. 12.000 lb Projected direct manufacturing labor requirements and rates for 2017 are: Product Hours Per Unit Rate Per Hour Thingone 4 $13 Thingtwo 5 $18 Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour Required