do e9-2 (p. 397); show the production budget for each month (April, May, June) and the production budget for the quarter (April- June), AND do part 1 of e9-4; show the direct labor budget for each quarter (First, Second, Third, Fourth) and the budget for the year, Part 2: read and then reply to the posts of at least two students in the class. Note: for e9-2, a quarter of a year is 3 months (ie., 1/4 x 12 months 3 months), and the second quarter is April-June. EXERCISE 9-2 Production Budget [LO3] Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: DF Sales in Units April 50,000 May 75,000 June. 90,000 July... 80,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month's sales. The inventory at the end of March was 5,000 units. Required: Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total. DF EXERCISE 9-4 Direct Labor Budget [LO5] The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter Units to be produced.... 8,000 2nd Quarter 6,500 3rd Quarter 4th Quarter 7,000 7,500 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $12.00 per hour. Required: 1. Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to pro- duce the forecasted number of units produced. 2. Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,600 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,600 hours anyway. Any hours worked in excess of 2,600 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor