The facts and figures relating to Al Khabeesi Corporation are as follows. Al Khabeesi Corporation produces drip irrigation connectors. The company is preparing its budget for 2022. The first step is to plan for the first quarter of that coming year. Sales Budgeted sales for November 2021 were 120,500 units. It is anticipated that sales for the following month will be increasing by 5% of the current month's sales. The selling price per unit is expected to be $15 per connector for the first two quarters of 2022. The selling price for the subsequent quarters is expected to rise by 2.5% due to inflationary pressures All sales are on credit. Al Khabeesi likes to keep 5% of next month's unit sales in ending inventory. 80% of the accounts receivable are collected in the month of sale and 20% of the accounts receivable are collected in the month after sale. The accounts receivable on December 31, 2021, totaled $370,500 Direct Materials 1.5 pounds of direct materials are needed to produce one connector. Al Khabeesi likes to keep 5% of the materials needed for the next month's production in its ending inventory. Raw materials on hand on December 31, 2021, totaled 12,500 pounds. Payment for materials is made within 15 days. 70% is paid in the month of purchase, and 30% is paid after the month of purchase Accounts payable on December 31, 2021. totaled $100,500 Direct Labor Labor requires 10 minutes per unit for completion and is paid at a rate of $10 per hour. Manufacturing Overhead Indirect materials S0.20 per labor hour Indirect labor $0.30 per labor hour Utilities S0.40 per labor hour Maintenance $0.20 per labor hour Factory supervisor's salary $40,000 per month Factory Depreciation $16,000 per month Property taxes $ 2,000 per month Insurance $ 1,300 per month Repairs $ 1.200 per month Manufacturing overhead are paid in the month incurred