Sunland Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022. January February March April May Estimated unit sales 14,400 16,800 15,600 13,200 13,200 Unit selling price $60 $57.5 $57.5 $57.5 $57.5 Direct labor hours per unit 2.0 2.0 1.5 1.5 1.5 Direct labor cost per hour $6.0 $6.0 $6.0 $7.0 $7.0 Sunland has a labor contract that calls for a wage increase to $7.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Sunland expects to begin the year with 21,120 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales.