You have been hired as the Production Planner for

Montreal-based Aero Inc. which makes engineering

components (see image below) for various industries

such as the Aerospace, Medical, Transportation and

Consumer Products industries.

The sales manager has provided the following sales

forecast for Q1 of 2022:

Jan. Feb. March April

150 100 150 200

The company has a policy of maintaining 10% of the

next month's production as its monthly ending

inventory. It had 50 units in stock on January 1st

2022.

Its material costs are $25 per unit.

It takes each of its 5 employees 2 hours to make

each component.

The company's direct overhead (variable) is $3 per

labour hour per month. Its fixed overhead is $10,000

per month.

It sells each unit/product to its customers for $115.

Create a monthly production schedule (January,

February and March) budget showing the total

monthly production needs and calculate the Direct

Materials, Direct Labor Costs and Direct Variable

Overhead Costs and Direct Fixed Overhead Costs

Also indicate the totals for each item for the quarter.

Finally calculate the monthly_ profit it earns each

month. ( (Revenues - Expenses = Profit)