Exercise 9-10 Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020. January February March April May Estimated unit sales 10,500 11,200 8,200 8,800 9,000 Sales price per unit $50.30 $47.00 $47.00 $47.00 $47.00 Direct labor hours per unit 2.2 2.2 1.6 1.6 Wage per direct labor hour $8 $8 $8 $9 $9 1.6 Lowell has a labor contract that calls for a wage increase to $9 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lowell expects to begin the year with 18,340 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 70% of the second following month's sales. Prepare a production budget for Lowell Company by month and for the first quarter of the year. LOWELL COMPANY Production Budget For the Quarter Ending March 31, 2020 Jan Feb Mar Total Expected Unit Sales 10500 11200 8200 Add A. Desired Ending Finished Goods Unit4 16940 14360 15100 Total Required Units 27440 25560 23300 Less A. Beginning Finished Goods Unit A Required Production Units MTV V TA TEV Prepare a direct labor budget for Lowell Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.) LOWELL COMPANY Direct Labor Budget Jan Feb Mar Total A Click if you would like to Show Work for this question: Open Show Work