Smith Inc Smith Inc produces headlights used in SUVs. The headlight sales for the next 5 months is projected to be: January 10,000 bruary 10,500 March 13,000 April May 16,000 18,500 The following information pertains to the budget assumptions. a. Finished goods inventory on January 1 is expected to be 900 units. The desired ending FGI for any month (except for the Dec 31 inventory as noted previously) is expected to be 20% of the following month's sales. b. Data for materials used are: S3.95 per part S7.10 per part Raw materials inventory is always budgeted to equal 30% Part K298 Part C30 2 parts per unit 3 parts per unit of the following month's production needs. c. Direct labor used per headlight is 1.5 hours at a rate of $21/hr d. Overhead each month is estimated at: Ovarhead eetimates Fixed portion (per month varable cost (S per DLH cost Power 02 14000 Other 1.6 e. Selling and Admin is estimated each to be (variable are on a per unit basis) Fixed Costs Costs Salaries Commissions Depreciation Shipping Other S 88,500 $1.40 25,000 3.60 137,000 1.60 f. Selling price per headlight is $105.00