Seer Manufacturing has projected sales of its product for the next six months as follows:

January..............................40 units

February............................90 units

March..............................100 units

April...................................80 units

May....................................30 units

June...................................70 units

The product sells for $100, variable expenses are $70 per unit, and fixed expenses are $1,500 per month. The finished product requires three units of raw material and 10 hours of direct labour. The company tries to maintain an ending inventory of finished goods equal to the next two months of sales and an ending inventory of raw materials equal to half of the current month’s usage.

Required:

A. Prepare a production budget for February, March, and April.

B. Prepare a forecast of the units of direct materials required for February, March, and April.

C. Prepare a direct labour hours budget for February, March, and April.