Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kerry, the controller, is responsible for preparing Roletter's master budget and has accumulated the following information for 2021: Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Roletter Company by month and for the first quarter of 2021. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then enter all amounts in the budget [other than the direct manufacturing labor-hours per unit] to the nearest whole number.) Roletter Company X Budget for Production and Direct Manufacturing Labor Requirements For the Quarter Ended March 31, 2021 January February March Quarter 1. Prepare a production budget and a direct manufacturing labor cost budget for Budgeted sales (units) Roletter Company by month and for the first quarter of 2021. You may combine both budgets in one schedule. The direct manufacturing labor cost Add target ending finished goods inventory (units) budget should include labor-hours and show the details for each labor cost category. Total requirements (units) 2. What actions has the budget process prompted Roletter's management to Deduct beginning finished goods inventory (units) take? 3. How might Roletter's managers use the budget developed in requirement 1 to Units to be produced better manage the company? Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Direct manufacturing labor costs: Print Done Wages Pension contributions Workers' compensation insurance Employee medical insurance Social Security tax (employer's share)Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kerry, the controller, is responsible for preparing Roletter's master budget and has accumulated the following information for 2021: (Click the icon to view some of the financial information.) i (Click the icon to view additional information.) Read the requirements. Deduct beginning finished goods inventory (units) Units to be produced - X Data table Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed 2021 Direct manufacturing labor costs: January February March April May Wages Estimated sales in units 11,000 17,000 8,000 9,000 9,000 Pension contributions Selling price $ 53.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 Workers' compensation insurance Direct manufacturing labor-hours per unit 3.C 3.0 1.5 1.5 1.5 Employee medical insurance Wage per direct manufacturing labor-hour $ 8.00 $ 8.00 $ 8.00 $ 11.00 $ 11.00 Social Security tax (employer's share) Total direct manufacturing labor costs Requirement 2. What actions has the budget process prompted Roletter's management to take? (Select all that apply.) Print Done Roletter's management would look for ways to Requirement 3. How might Roletter's managers use the budget developed in requirement 1 to better manage the company? Roletter's management should work with employees toRoletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kerry, the controller, is responsible for preparing Roletter's master budget and has accumulated the following information for 2021: Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Roletter Company by month and for the first quarter of 2021. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then enter all amounts in the budget [other than the direct manufacturing labor-hours per unit] to the nearest whole number.) Roletter Company X Budget for Production and Direct Manufacturing Labor More info For the Quarter Ended March 31, 2021 January February March Quarter In addition to wages, direct manufacturing labor-related costs include pension Budgeted sales (units) contributions of $0.40 per hour, worker's compensation insurance of $0.20 per hour, employee medical insurance of $0.30 per hour, and Social Security taxes. Add target ending finished goods inventory (units) Assume that as of January 1, 2021, the Social Security tax rates are 7.5% for Total requirements (units) employers and 7.5% for employees. The cost of employee benefits paid by Roletter on its direct manufacturing employees is treated as a direct manufacturing Deduct beginning finished goods inventory (units) labor cost. Units to be produced Roletter has a labor contract that calls for a wage increase to $11 per hour on April 1, 2021. New labor-saving machinery has been installed and will be fully Direct manufacturing labor-hours per unit operational by March 1, 2021. Roletter expects to have 21,000 frames on hand at Total hours of direct manufacturing labor time needed 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 Direct manufacturing labor costs: sales. Wages Pension contributions Workers' compensation insurance Print Done Employee medical insurance