Problem 10.35A a Your answer is partially correct, Choo-Foo 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 11,000 13,000 7.000 8,000 10,000 Sales price per unit $51.00 $48.70 $48.70 $48.70 $48.70 Direct labour hours per unit 2.0 2.0 1.5 1.5 1.5 Wage per direct labour hour $7.00 57.00 $7.00 $8.00 $8.00 Choo-Foo has a labour contract that calls for a wage increase to $8.00 per hour on April 1. It has installed new labour-saving machinery, which will be fully operational by March 1. Choo-Foo expects to begin the year with 14,000 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales. (a) Prepare a production budget and a direct labour budget for Choo-Foo 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. (Round DLH per unit to 1 decimal places, e.g. 1.2, labor rate per hour to 2 decimal places, e.g. 12.25 and all other answers to o decimal places, c.9. 125.) CHOO-FOO COMPANY Production Budget For the quarter ending March 31, 2020 Jan Feb Mar Total Ending Inventory 11000 13000 7000 31000 > X Add Ending Inventory 16500 11000 13000 40500 X X Begining Inventory 14000 16500 11000 41500 Less Begining inventory 7500 x x Total 13500 48000 CHOO-FOO COMPANY Direct Labour Budget For the quarter ending March 31, 2020 Jan Feb Mar 13500 7500 9000 Total Production in units 2.0 2.0 1.5 DLH per unit x 33750 15000 13500 Total hours required 15 Rate per houd x 435750 236250 105000 94500 Total