Shipping Company plans to sell $90,000$ units of a certain product line at a price of $$16$ per unit. There are $7,500$ units of the product in inventory at January $1$ and the inventory is to be increased $15\%$ during the year.

a$.$ Prepare a production budget for the year. $$ units

Two types of materials are used to make the product. Three units of Material A$,$ costing $40$ cents each, are required for each unit of product, and two units of Material B$,$ costing $36$ cents each, are required for each unit of product. On January $1,$ there are $10,000$ units of Material A in inventory and $5,000$ units of Material B$.$ Plans for the year indicate both Material A and B inventories will increase $10\%.$

b$.$ Prepare a direct materials budget for Product A and Product B:

Product A $ $$ Product B $ $$

Each unit of product can be produced in $20$ minutes $(\frac{1}{3}$ of an hour$)$ of direct labor time. Direct labor is paid at the rate of $$12\mathrm{.}00$ an hour.

c$.$ Prepare a direct labor budget for the year. $$\_$