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Waterway Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information
Waterway Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022. January February March April May Estimated unit sales 15,360 17,920 16,640 14,080 14,080 Unit selling price $60 $57.5 $57.5 $57.5 $57.5 Direct labor hours per unit 2.0 2.0 1.5 1.5 1.5 Direct labor cost per hour $6.0 $6.0 $6.0 $7.0 $7.0 Waterway has a labor contract that calls for a wage increase to $7.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Waterway expects to begin the year with 22,528 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales. Sales in Units Add : Desired Ending Inventory Total Needs Jan WATERWAY COMPANY Production Budget For the Quarter Ending March 31, 2022 15360 24576 39936 Feb 17920 22272 40192 Less : Beginning Inventory 22528 i 24576 i Required Production Units 17408 15616 Jan WATERWAY COMPANY Production Budget For the Quarter Ending March 31, 2022 15360 24576 39936 Feb 17920 22272 40192 Mar 16640 Total 49920 19712 19712 36352 69632 22528 i 24576 i 22272 i 22528 17408 15616 14080 47104 Prepare a direct labor budget for Waterway Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.) Production in Units Direct Labor Hours per Unit Total Hours Needed Direct Labor Cost Per Hour Total Direct Labor > A A Jan WATERWAY COMPANY Direct Labor Budget For the Quarter Ending March 31, 2022 Feb M. GA $ $ +A $ $ Prepare a direct labor budget for Waterway Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.) Jan WATERWAY COMPANY Direct Labor Budget For the Quarter Ending March 31, 2022 $ Feb $ Mar Total +A $ $ $
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