+ EI A Read aloud y Draw Highlight Assignment #2 Budgets Total Marks 63 Problem 1 (23 marks) Davidson's Company makes and sells chairs. The Controller is responsible for preparing the master budget and has accumulated the following information for the year. January February March April May Estimated Sales (units) Sales Price per unit Direct labour hours per unit Wage per direct labour hour 13,000 $75 15,000 $85 2 $18 18,000 $75 2 $18 1.5 14,000 $75 1.5 $20 14,000 $75 1.5 $20 $18 Davidson Company has a labour contract that calls for a wage increase of $20 per hour on April 1. It has installed new labour-saving machinery, which will be fully operational by March 1. The company expects to begin the year with 24.000 chairs on hand and has a policy of carrying an end of month inventory of 100% of the following months sales plus 50% of the next month's sales. Instructions Prepare a production budget and a direct labour budget for the company, by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category. BASKIRAN BAWA! Attempt 5 Question 2 (1 point) M&H's unit production cost under variable costing is $25, and $32 under absorption costing. Net income under variable costing was $250,000 and $187,000 under absorption costing last year. Production equalled 63,000 units. How many units did M&H sell? 72,000 56,000 54,000 70,000