Sarasota Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2017.

January

February

March

April

May

Estimated unit sales10,40011,0008,7008,0008,500Sales price per unit$50.90$48.10$48.10$48.10$48.10Direct labor hours per unit2.22.21.61.61.6Wage per direct labor hour$8.00$8.00$8.00$9.00$9.00

Sarasota has a labor contract that calls for a wage increase to $9.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1.

Sarasota expects to begin the year with 14,800 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales.