Wickharn Company makes and sells artistic frames for pictures of weddings, graduations, and other special events, Ron Kerry, the controller, is responsible for preparing Wickham's master budget and has accumulated the following information for 2018 (Click the icon to view some of the financial information.) (Click the icon to view additional information.) Read the requirements Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Wickham Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, XX. Do not round interim calculations, and then enter all amounts in the budget (other than the direct manufacturing labor-hours per unit] to the nearest whole number.) Wickham Company Budget for Production and Direct Manufacturing Labor Data Table For the Quarter Ended March 31, 2018 January February March 2018 Budgeted sales (units) January February March April May Add target ending finished goods inventory (units) Estimated sales in units 12.000 13,000 8,000 11,000 11.000 Total requirements (units) Selling price $ 58.00 $ 52.50 S 52.50 $ 52.50 $ 52.50 Deduct beginning finished goods inventory (units) Direct manufacturing labor-hours per unit 3.0 3.0 1.5 1.5 1.5 Units to be produced Wage per direct manufacturing labor-hour 12.00 $ 12.00 S 12.00 $ 13.00 $ 13.00 Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Print Done * Requirements - X A More Info - X 1. Prepare a production budget and a direct manufacturing labor cost budget for Wickham Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category 2. What actions has the budget process prompted Wickham's management to take? 3. How might Wickhari's managers use the budget developed in requirement 1 to better manage the company? In addition to wages, direct manufacturing labor-related costs include pension contributions of S0.40 per hour, worker's compensation insurance of $0.15 per hour, employee medical insurance of $0,30 per hour, and Social Security taxes Assume that as of January 1, 2018, 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. Print Done Wickham has a labor contract that calls for a wage increase to S13 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Wickham expects to have 17.000 frames on hand at December 31, 2017, 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. Print Done Wickharn Company makes and sells artistic frames for pictures of weddings, graduations, and other special events, Ron Kerry, the controller, is responsible for preparing Wickham's master budget and has accumulated the following information for 2018 (Click the icon to view some of the financial information.) (Click the icon to view additional information.) Read the requirements Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Wickham Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, XX. Do not round interim calculations, and then enter all amounts in the budget (other than the direct manufacturing labor-hours per unit] to the nearest whole number.) Wickham Company Budget for Production and Direct Manufacturing Labor Data Table For the Quarter Ended March 31, 2018 January February March 2018 Budgeted sales (units) January February March April May Add target ending finished goods inventory (units) Estimated sales in units 12.000 13,000 8,000 11,000 11.000 Total requirements (units) Selling price $ 58.00 $ 52.50 S 52.50 $ 52.50 $ 52.50 Deduct beginning finished goods inventory (units) Direct manufacturing labor-hours per unit 3.0 3.0 1.5 1.5 1.5 Units to be produced Wage per direct manufacturing labor-hour 12.00 $ 12.00 S 12.00 $ 13.00 $ 13.00 Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Print Done * Requirements - X A More Info - X 1. Prepare a production budget and a direct manufacturing labor cost budget for Wickham Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category 2. What actions has the budget process prompted Wickham's management to take? 3. How might Wickhari's managers use the budget developed in requirement 1 to better manage the company? In addition to wages, direct manufacturing labor-related costs include pension contributions of S0.40 per hour, worker's compensation insurance of $0.15 per hour, employee medical insurance of $0,30 per hour, and Social Security taxes Assume that as of January 1, 2018, 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. Print Done Wickham has a labor contract that calls for a wage increase to S13 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Wickham expects to have 17.000 frames on hand at December 31, 2017, 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. Print Done