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 critic times. To overcome the shortages, the manager of East Division has decided 1 initiate a monthly budgeting system that is integrated between departments The first budget is to be for the second quarter of the current year (April, May and June). To assist in developing the budget figures, the divisional controller has accumulated the following information 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 sale 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 35,000 50,000 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: Direct Material Cost per Finished ComponentIb/ft Units of Direct Materials per Inventory at March 31 No. 208 No. 311 4 pounds 9 feet 46,000 pounds 69,000 feet $5.00 2.00