Score: 0 of 4 pts E6-29 (similar to) 3 of 5 (1 complete) Save HW Score: 20%, 4 of 20 pts Question Help Clark Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kyler, the controller, is responsible for preparing Clark's master budget and has accumulated the following information for 2021 1. Click the icon to view some of the financial information) Click the icon to view additional information) Read the requirements Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Clark 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 cont 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, the quarter (Enter the direct manufacturing labor-hours per unit to one decimal place, XX. Do not found interim calculations, and then enter amounts in the budget other than the direct manufacturing labor-hours per unit to the nearest whole number) Clark Company Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2021 January February March Expe Budgeted sales (units) Add target ending finished goods inventory (units) Total requirements (units) Deduct beginning finished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed 1. Prepare a production budget and a direct manufacturing labor cost budget for Clark Company by month and for the first qua may combine both budgets in one schedule The direct manufacturing labor cost budget should include labor-hours and show the details for category Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three m quarter then calculate the values for the quarter Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by me (Enter the direct mpau acimal place. Dacotacound interim calendations and the name than the direct mar Data Table Labae April Budgeted sales (up Add target ending Total requirements Deduct beginning Units to be produc Estimated sales in units Selling price Direct manufacturing labor-hours per unit Wage per direct manufacturing labor-hour January February 14.000 18,000 $ 58.00 5 50.00 5 30 $ 10.00 $ 1000 5 2021 March 9.000 5000 $ 20 12.000 50.00 5 May 12.000 50 00 20 14.00 20 1400 5 10.00 $ Direct manufacturi Print Done Total hours of dired Enter any number in the edit fields and then click Check Answer Check Awe CA 5 Parts Eemaining mpany by month an cturing labor cost budget should include labor-hours and sho ale by preparing the production budget and calculating the total hours of direct manufacturing labor time neede Iculate the values Et manufacturing la * More Info - X manufacturing lab Budget for Pro For ti In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.60 per hour, worker's compensation insurance of $0.10 per hour, employee medical insurance of $0.40 per hour, and Social Security taxes. Assume that as of January 1, 2021, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Clark on its direct manufacturing employees is treated as a direct manufacturing labor cost. ales (units) ending finished goods ements (units) ginning finished goods e produced nufacturing labor-hours Clark has a labor contract that calls for a wage increase to $14 per hour on April 1, 2021. New labor-saving machinery has been installed and will be fully operational by March 1, 2021. Clark expects to have 22,500 frames on hand at 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 sales. is of direct manufacturin Print Done budget and calculating the total hours of direct manufacturing labor time neec for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufa abor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then en i Requirements 1. Prepare a production budget and a direct manufacturing labor cost budget for Clark 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. 2. What actions has the budget process prompted Clark's management to take? 3. How might Clark's managers use the budget developed in requirement 1 to better manage the company? ds As Print urs Done uring labor time needed