4. Assume you are the supervisor of the machine shop whose budget appears in Table 6.2.

a. Modify the budgeted amounts to create a budget for a new project of the same size and type. Use the following assumptions and guidelines:

• The organization says that direct labor costs may increase by no more than 6 percent.

• You have been instructed to cut expenses for equipment repair by 10 percent.

• You expect that materials costs will increase about 5 percent.

b. What additional assumptions did you make to create the budget?