Richard Moore, Coronado & Moore Fabricators' production manager, has just received the company's sales budget for the first quarter: Budgeted unit sales Budgeted ending inventory Total units required Beginning inventory Budgeted production January 25,000 5,600 30,600 3,200 February 28,000 6,000 34,000 5,600 28,400 March 30,000 6,800 36,800 6,000 Quarter 83,000 6,800 89,800 3,200 86,600 27,400 30,800 Its manufacturing overhead budget for the first quarter is as follows: DLH worked VOH per DLH Budgeted VOH Budgeted FOH Total Budgeted MOH Noncash MOH items Depreciation Total Cash MOH cost January 5,480 $1.75 9,590 100,000 109,590 February 5,680 $1.75 9,940 100,000 109,940 March 6,160 $1.75 10,780 100,000 110,780 Quarter 17,320 $1.75 30,310 300,000 330,310 32,000 $77,590 32,000 $77,940 32,000 $78,780 96,000 $234,310 He also has received the direct materials purchases budget and direct labor budget which were as follows: April 32,400 x 6 194,400 Budgeted production Standard pounds per unit Production needs Budgeted ending inventory Total DM required (lbs.) Beginning inventory Budgeted purchases (lbs.) Standard cost per pound Budgeted purchases cost January 27,400 x 6 164,400 17,040 181,440 13,000 168,440 $1.50 $252,660 February 28,400 x 6 170,400 18,480 188,880 17,040 171,840 $1.50 $257,760 March 30,800 x 6 184,800 19,440 204,240 18,480 185,760 $1.50 $278,640 Quarter 86,600 x 6 519,600 19,440 539,040 13,000 526,040 $1.50 $789,060 Budgeted production Standard DLH per unit Total DLH required Standard wage rate Budgeted DL cost January 27,400 x 0.20 5,480 * $20 $109,600 February 28,400 x 0.20 5,680 $20 $113,600 March 30,800 x 0.20 6,160 $20 $123,200 Quarter 86,600 x 0.20 17,320