Sales, Production, Direct Materials Purchases, and Direct Labor CostThe budget director of Peaky Blinders Furniture Company requests estimates of sales, production, and other operating data every month. Selected information concerning sales and production for March is summarized as follows:a$.$ Estimated sales of Thomas and Polly chairs for March by sales territory:Birmingham:Product NameDataThomas$8,250$ units at $$900$ per unitPolly$7,000$ units at $$700$ per unitLondon:Product NameDataThomas$6,000$ units at $$800$ per unitPolly$6,750$ units at $$650$ per unitInternational:Product NameDataThomas$4,500$ units at $$600$ per unitPolly$1,000$ units at $$350$ per unitb. Estimated inventories at March $1$:Direct materials:DepartmentData Fabric$2,750$ sq$.$ yds$.$ Wood$6,850$ lineal ft$.$ Filler$1,900$ cu$.$ ft$.$ Springs$3,500$ units Finished products:Product NameUnits Completed Thomas$1,000$ units Polly$150$ unitsc. Desired inventories at March $31$:Direct materials:DepartmentData Fabric$4,500$ sq$.$ yds$.$ Wood$10,000$ lineal ft$.$ Filler$2,500$ cu$.$ ft$.$ Springs$7,500$ units Finished products:Product NameUnits Completed Thomas$1,000$ units Polly$450$ unitsd. Direct materials used in production:In manufacture of Thomas:DepartmentData Fabric$2\mathrm{.}0$ sq$.$ yds$.$ per unit of product Wood$8$ lineal ft$.$ per unit of product Filler$3\mathrm{.}8$ cu$.$ ft$.$ per unit of product Springs$7$ units per unit of product In manufacture of Polly:DepartmentData Fabric$2\mathrm{.}5$ sq$.$ yds$.$ per unit of product Wood$6$ lineal ft$.$ per unit of product Filler$3\mathrm{.}2$ cu$.$ ft$.$ per unit of product Springs$5$ units per unit of product e$.$ Anticipated purchase price for direct materials:DepartmentDataFabric$$10\mathrm{.}00$ per sq$.$ yd$.$ Wood$5\mathrm{.}00$ per lineal ft$.$Filler$$1\mathrm{.}50$ per cu$.$ ft$.$ Springs$3\mathrm{.}00$ per unit f$.$ Direct labor requirements:Thomas:DepartmentData Framing Department$2\mathrm{.}5$ hrs$.$ at $$30$ per hr$.$ Cutting Department$1\mathrm{.}0$ hr$.$ at $$24$ per hr$.$ Upholstery Department$3\mathrm{.}0$ hrs$.$ at $$32$ per hr$.$Polly:DepartmentData Framing Department$1\mathrm{.}5$ hrs$.$ at $$30$ per hr$.$ Cutting Department$0\mathrm{.}5$ hr$.$ at $$24$ per hr$.$ Upholstery Department$2\mathrm{.}0$ hrs$.$ at $$32$ per hr$.$Required:Question Content Area$1.$ Prepare a sales budget for March.Peaky Blinders Furniture CompanySales BudgetFor the Month Ending March $31$Product and AreaUnit Sales VolumeUnit Selling PriceTotal SalesThomas:BirminghamBirmingham$Birmingham$BirminghamLondonLondonLondonLondonInternationalInternationalInternationalInternationalTotalTotal$TotalPolly:BirminghamBirmingham$Birmingham$BirminghamLondonLondonLondonLondonInternationalInternationalInternationalInternationalTotalTotal$TotalTotal revenue from sales$Total revenue from salesFeedback AreaFeedbackFor each product and each area, multiply the unit sales volume by the unit selling price.Question Content Area$2.$ Prepare a production budget for March.Peaky Blinders Furniture CompanyProduction BudgetFor the Month Ending March $31$Line Item DescriptionThomas UnitsPolly UnitsExpected units to be soldExpected units to be soldExpected units to be sold$-$ Select $--$ Select $-$TotalTotalTotal$-$ Select $--$ Select $-$Total units to be producedTotal units to be producedTotal units to be producedFeedback AreaFeedbackExpected units to be sold plus desired ending inventory minus estimated beginning inventory equals units produced.Question Content Area$3.$ Prepare a direct materials purchases budget for March.Peaky Blinders Furniture CompanyDirect Materials Purchases BudgetFor the Month Ending March $31$Direct Materials:Fabric $($sq$.$ yds$.)$Wood $($lineal ft$.)$Filler $($cu$.$ ft$.)$Springs $($units$)$TotalRequired units for production:ThomasThomasThomasThomasThomasPollyPollyPollyPollyPolly$-$ Select $--$ Select $--$ Select $--$ Select $-$TotalTotalTotalTotalTotal$-$ Select $--$ Select $--$ Select $--$ Select $-$Total units to be purchasedTotal units to be purchasedTotal units to be purchasedTotal units to be purchasedTotal units to be purchasedUnit price$Unit price$Unit price$Unit price$Unit priceTotal direct materials to be purchased$Total direct materials to be purchased$Total direct materials to be purchased$Total direct materials to be purchased$Total direct materials to be purchased$Total direct materials to be purchasedFeedback AreaFeedbackFor each material and for both products, the production quantity plus the desired ending inventory minus the estimated beginning inventory equals the quantity of direct materials to be purchased. Multiply the quantity by the price per unit.Question Content Area$4.$ Prepare a direct labor cost budget for March.Peaky Blinders Furniture CompanyDirect Labor Cost BudgetFor the Month Ending March $31$Line Item DescriptionFraming DepartmentCutting DepartmentUpholstery DepartmentTotalHours required for production:ThomasThomasThomasThomasPollyPollyPollyPollyTotalTotalTotalTotalHourly rate$Hourly rate$Hourly rate$Hourly rateTotal direct labor cost$Total direct labor cost$Total direct labor cost$Total direct labor cost$Total direct labor cost