School Days Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units which are sold to public school systems throughout the midwest. The controller of the companys Desk Division is currently preparing a budget for the third quarter of the year. The following sales forecast has been made by the divisions sales manager.

July	5,000	desk-and-chair sets
August	6,000	desk-and-chair sets
September	7,500	desk-and-chair sets

Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of direct labor. Each set sells for $60. Pine planks cost $0.60 per board foot, and the division ends each month with enough wood to cover 10 percent of the next months production requirements. The division incurs a cost of $21.00 per hour for direct-labor wages and fringe benefits. The division ends each month with enough finished-goods inventory to cover 20 percent of the next months sales.

1. Sales budget: Ju Sales (in sets) Sales Sales revenue price per set 2. Production budget (in sets): August September Sales Add: Desired ending inventory Total requirements Less: Projected beginning inventory Planned production 1,500 3. Raw material purchases: ust Se Planned production (sets) Raw material required per set (board feet) Raw material required for production rd feet Add: Desired ending inventory of raw material, in board feet (10% of next month's requirement) 8,000 Less: Projected beginning inventory of raw material, in board feet (10% of current month's requirement) Planned purchases of raw material (board feet Cost per board foot Planned purchases of raw material dollars 4. Direct-labor budget August Se Planned production (sets) Direct-labor hours per set Direct-labor hours required Cost per hour Planned direct-labor cost