Wickham

Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron

Hart,

the controller, is responsible for preparing

Wickham's

master budget and has accumulated the following information for

2021

Data table

	2021
	January	February	March	April	May
Estimated sales in units	15,000	18,000	9,000	12,000	12,000
Selling price	$55.00	$50.50	$50.50	$50.50	$50.50
Direct manufacturing labor-hours per unit	3.5	3.5	2.0	2.0	2.0
Wage per direct manufacturing labor-hour	$10.00	$10.00	$10.00	$12.00	$12.00

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In addition to wages, direct manufacturing labor-related costs include pension contributions of

$0.60

per hour, worker's compensation insurance of

$0.10

per hour, employee medical insurance of

$0.30

per hour, and Social Security taxes. Assume that as of January 1,

2021,

the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by

Wickham

on its direct manufacturing employees is treated as a direct manufacturing labor cost.

Wickham

has a labor contract that calls for a wage increase to

$12

per hour on April 1,

2021.

New labor-saving machinery has been installed and will be fully operational by March 1,

2021.

Wickham

expects to have

22,500

frames on hand at December 31,

2020,

and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales.