Barnes Manufacturing Co. forecast October sales to be 45,000 units.

Barnes Manufacturing Co. forecast October sales to be 45,000 units. Additional information follows:
Finished goods inventory, October 1............................... 5,000 units
Finished goods inventory desired, October 31................ 4,000 units
Direct labor hours required in production:
Department Hours per Unit
Cutting........................................................ 0.25
Assembly..................................................... 0.50
Direct laborers earn: Cutting, $14 per hour; Assembly, $12 per hour.
Prepare the following:
a. A production budget for October.
b. A direct labor budget for October.

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