I want to answer an hour before and write in a clear handwriting if possible.

The production department of Priston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year.

Units to be produced . . . . Q1 - 8,000 Q2 - 9,000 Q3 - 10,000

Each unit requires three pounds of raw material that costs $2.50 per pound. Management desires to end each quarter with a raw materials inventory equal to 20% of the following quarters production needs.

Each unit requires 0.40 direct labor-hours and direct labor-hour workers are paid $11 per hour.

Instructions:

a) Prepare the companys direct materials budget for six months ( Quarter 1 and Quarter 2)

b) Construct the companys direct labor budget for Quarter 1 and Quarter 2, If the number of required direct labor-hours is less than this number, the workers are paid for 3,200 hours anyway. Any hours worked in excess of 3,200 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.