The following information relates to the attitucs manufacturing co

average sales price 56

sales by territory (units)

January 67500 80000 35000 101000 91500

february 64000 89500 41000 97500 97500

march 70500 86000 29500 112000 110500

desired finished goods inventories

january 1 204,650(costing 9618550)

january 31 201,500

february 28 195,900

march 31 206,100

one unit of direct materials is required to produce one finished unit

direct materials cost per unit 44

desired ending direct materials inventory 55% of next months production

production - april 216,710 units

the estimated direct labor hours and direct labor cost per hour to complete one unit differ each month b/c of the differing availability of skilled workers they are as follows

jan hrs per unit .834409 cost per hour 3.595359

feb ".830115 / 3.613957

march " .856078 / 3.504352

Variable factory overhead application rates per direct labor hour

indirect labor ..... .50

payroll taxes ...... .20

maintenance..... .25

heat and light ..... .05

power ....... .10

misc ...... .02

variable selling expenses as a percentage of total sales dollars

commissions ..... .04%

travel ......... .02%

advertising...... .03%

bad debts...... .01%

fixed expenses per month:

salaris sales 3,400

salaries office 650

salaries executive 2800

depreciation 2500 (factory)

taxes 250 (administrative)

insurance 500(administrative)

taxes 1000(factory)

insurance 750 (factory)

indirect materials 1500(factory)

indirect labor 700 (factory)

supervision 950 (factory)

maintenance 600 (factory)

heat and light 400 (factory)

power 350 (factory)

assume:

all fixed expenses are paid when incurred

direct materials are paid when recieved

all sales are for cash

estimated income taxes are paid monthly

cash balance on january 1 is 500,000

required: given the preceding information prepare the following budgets for the atticus mfg co for the first quarter 19x0

e) direct labor

f) factory overhead

g) cost of goods sold

h) selling expenses