The East Division of Kensic Company manufactures a vital component that is used in one of Kensic's major product lines. The East Division has been experiencing some difficulty in coordinating activities between its various departments, which has resulted in some shortages of the component at critical times. To overcome the shortages, the manager of East Division has decided to initiate a monthly budgeting system that is integrated between departments The first budget is to be for the second quarter of the current and June). To assist in developing the budget figures, the divisionalcontrole has accumulated the following information. year (April, May Sales: Sales through the first three months of the current year were 30,000 units. Actual sales in units for January, February, and March, and planned sales in units over the next five months, are given below: January (actual) February (actual) March (actual) April (planned) May (planned) June (planned) July (planned) August (planned) 6,000 10,000 14,000 20,000 34,000 51,000 45,000 30,000 In total, the East Division expects to produce and sell 250,000 units during the current year. Direct Material: Two different materials are used in production of the component. Data regarding these materials are given below Cost per Material Finished Component lb/ft Units of Direct Materials per Inventory at Direct March 31 No. 208 No. 311 4 pounds 9 feet $5.00 2.00 46,000 pounds 69,000 feet