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.

Budgeted number of mantels to be sold $,\frac{\text{J}\text{a}\text{n}\text{u}\text{a}\text{r}\text{y}}{410}\frac{\text{F}\text{e}\text{b}\text{r}\text{u}\text{a}\text{r}\text{y}}{440}\frac{\text{M}\text{a}\text{r}\text{c}\text{h}}{440}\frac{\text{A}\text{p}\text{r}\text{i}\text{l}}{430}\frac{\text{M}\text{a}\text{y}}{440}$

In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows.

Budgeted selling price is $$500$ per mantel. Each mantel measures $3$ inches $12$ inches $4$ feet.

Target ending inventory of finished mantels is $20\%$ of next month's budgeted sales. However, beginning inventory on January $1$ is expected to be only $41$ units.

Novak' primary DM$,$ rough$-$cut cedar, is purchased from the supplier already at the desired height and depth $(3$ inches high, $12$ inches deep$).$ Novak cuts the cedar planks to the desired $4-$foot lengths. Each rough$-$cut board costs Novak $$50$ per foot.

Target ending DM inventory $($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 budgeted to be $$\frac{10}{?}$ board foot, plus budgeted monthly Fixed MOH costs of $$4,400.$ Depreciation of $$2,100$ is included in that monthly fixed cost.

SG&A costs are also broken down into their variable and fixed components: budgeted variable SG&A costs are $$\frac{50}{?}$ unit sold, while budgeted fixed monthly SG&A costs are $$56,500,$ which includes $$8,000$ of depreciation.

All 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 $$220,000.$