Spiffy Shades Corporation manufactures artistic frames for sunglasses- Talia Demarest, controller, is responsible for preparing the company's master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 1.0 hour to 0.75 hour. Laborrelated costs include pension contributions of $1.ID5 per hour, workers\" compensation insurance of $035 per hour, employee medical insurance of $3 per hour, and employer contributions to Social Security equal to 100 percent of direct labor wages- The cost of employee benets paid by the company on its employees is treated as a directlabor cost. Spiffy Shades Corporation has a labor contract that calls for a wage increase to $22.00 per hour on April 1, 20x1. Management expects to have 11600 frames on hand at December 31, 20x0, and has a policy of carrying an endofmonth inventory of 100 percent of the following month's sales plus 40 percent of the second following month's sales. These and other data compiled by Dema rest are summarized in the following table- January February March April May Direct-labor hours per unit 1.6 1.6 6.?5 6.?5 6.?5 Nage per directlabor hour 5 26.66 5 26.66 5 26.66 $ 22.66 $ 22.66 Estimated unit sales 12, 333 14, 333 13,333 11,333 11,333 Sales price per unit 5 66.66 5 63.56 5 63.56 $ 63.56 $ 63.56 Production overhead: Shipping and handling (per unit sold) 5 5.66 5 5.66 5 5.66 $ 5.66 $ 5.66 Purchasing, material handling, and inspection (per unit produced) 5 6.66 5 6.66 5 6.66 $ 6.66 $ 6.66 Other production overhead (per directlabor hour) 5 4.66 $ 4.66 $ 4.66 $ 4.66 $ 4.66 Required: 1. Prepare a production budget and a directlabor budget for Spiffy Shades Corporation by month and for the first quarter of 20x1. [Round "Direct-labor hours per unit" to 2 decimal place-5.1 SPIFFY SHADES CORPORATION Budget for Production and Direct Labor For the First Quarter of 20x1 Month January February March Quarter Sales (units) Add: Ending inventory Total needs 0 0 0 Less: Beginning inventory Units to be produced 0 0 0 0 Direct-labor hours per unit Total hours of direct labor time needed 0 0 0 Direct-labor costs: Wages Pension contributions Workers' compensation insurance Employee medical insurance Employer's social security Total direct-labor cost 0 0 0 01 For each item used in the rm's production budget and directlabor budgetr select the other components ofthe master budget [except for financial statement budgets} that also, directly or indirectly, would use these data. (You may select more than one answer Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) a. Sales data: I] Selling and administrative expense budget I] Production-overhead budget I] Direct-material budget I] Cash budget I] Cost-ofgoodsrsold budget I] Sales budget I] Cash disbursements budget b. Production data: Selling and administrative expense budget Direct-material budget Cost-of-goods-sold budget Production-overhead budget Cash budget Cash disbursements budget Sales budgetc. Direct-labor-hour data: Selling and administrative expense budget Production-overhead budget Direct-material budget Cash budget Cost-of-goods-sold budget Sales budget Cash disbursements budgetd. Direct-labor cost data: Selling and administrative expense budget Production-overhead budget Direct-material budget Cash budget Sales budget Cost-of-goods-sold budget Cash disbursements budget3. Prepare a production overhead budget for each month and for the first quarter. _ _ _