Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows: a. Estimated sales of King and Prince chairs for February by sales territory: Northern Domestic King 610 units at $780 per unit Prince 750 units at $550 per unit Southern Domestic: King 340 units at $780 per unit Prince 440 units at $550 per unit International: King 360 units at $850 per unit Prince 200 units at $600 per unit b. Estimated inventories at February 1: Direct materials: Fabric Wood Filler Springs 420 sq. yds. 500 linear ft. 250 cu.ft. 660 units Finished products: King Prince 90 units 25 units c. Desired inventories at February 28: Direct materials: Fabric Wood Filler Springs 390 sq. yds. 650 linear ft. 300 cu. ft. 540 units Finished products: King Prince 80 units 35 units d. Direct materials used in production: In manufacture of King: Fabric Wood Filler 6.0 sq. yds. per unit of product 38 linear ft. per unit of product 4.2 cu. ft. per unit of product Springs 16 units per unit of product In manufacture of Prince: 4.0 sq. yds. per unit of product 26 linear ft. per unit of product Fabric Wood Fillor Springs 3.4 cu. ft. per unit of product 12 units per unit of product e. Anticipated purchase price for direct materials Fabric Wood Filler Springs $12.00 per sq. yd. 7.00 per linear ft. $3.00 per cu. ft. 4.50 per unit f. Direct labor requirements: King: Framing Department 1.2 hrs. at $12 per hr Cutting Department 0.5 hr. at $14 per hr Upholstery Department 0.8 hr. at $15 per hr f. Direct labor requirements: King: Framing Department 1.2 hrs. at $12 per hr. Cutting Department 0.5 hr. at $14 per hr. Upholstery Department 0.8 hr. at $15 per hr. Prince: Framing Department 1.0 hr. at $12 per hr. Cutting Department 0.4 hr. at $14 per hr. Upholstery Department 0.6 hr. at $15 per hr. Hours required for production: King Prince Total Hourly rate Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28 Framing Department Cutting Department Upholstery Department Total 1.2 X 0.5 X 0.8 X 1.0 X 0.4 x 0.6 x 2.2 X 0.9 X 1.4 X $ 12 14 15 Total direct labor cost 26.4 X 12.6 X 21 X 60 X