The management team at Blossom Corporation is capitalizing on the trendfor live-edgecedar fireplace mantels-beautiful, simple. organic in fact, sales are so strong they are running out of inventory. This ineans that budgeting for next year will be extremely important, to ensure sure that Blossom can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. In addition to sales volume, many other specifss are required in order to complete the coengany's operating budgets. Kery details associated with prices, costs, and usage are as follows. - Budgeted selling price is $500 per mantel. fach mantel measures 3 inches 12 inches 4 feet. - Target endingt inventory of finished mantels is 20 S of next month's budgeted sales. However, beginning inventory on January 1 is expected to be only 42 units. - Blossom' primary DM, rough cut codar, is purchased from the supplier already at the desired height and depth (3 inches high. 12 inches deep). Blossom cuts the cedar planks to the desired 4 - foot lenigths. Eachrough-cut board costs Blossom 550 per foot: - Target ending DM imventory (rough-cut cedar) is 50% of next month's production needs. - DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. - MOH resources include variable costs budigeted to be $10/ board foot, plus budgeted monthly Fixed MOH costs of $4,400. Depreciation of $2,100 is included in that inonthly fued cost. - SGSA costs are also broken down into their variable and fixed components: budgeted variable SG\&A costs are $50/unit sold, while bud geted foxed monthly $G&A costs are $6,000, which includes $8,500 of depreciation. - Al sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $235.000. - Beginning finished goods imventory was held at a cost of $265/ unit from the prior year