Total Pop’s data show the following information:

New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month’s requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next month’s needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.

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Estimated sales units Sales price per unit Direct labor per unit Labor rate per hour Jan. 15,000 Feb. 14,500 45 $ 45 $ 3 3 18 $ 18 $ $ $ Apr. 15,500 45 $ 45 $ 2 21 $ Mar. 16,000 2.25 21 $ May 15,800 45 2 21