Problems obj 2 P13-1 Sales, production, direct materials purchases, and direct labor cost The budget director of Royal British Furniture Company requests estimates of sales, produc- tion, and other operating data from the various administrative units every month. Selected information concerning sales and production for March is summarized as follows: a. Estimated sales of William and Kate chairs for March by sales territory: 3. Total Eastern Domestic: direct materials William 7,500 units at $800 per unit purchases, $3,894,830 Kate 6,000 units at $650 per unit Western Domestic: William 6,000 units at $700 per unit Kate 5,000 units at $550 per unit International: William 2,500 units at $600 per unit Kate 1,000 units at $350 per unit b. Estimated inventories at March 1: Direct materials: Finished products: Fabric 5,500 sq. yds. William 1,500 units Wood 13,700 lineal ft. Kate 300 units Filler 3,800 cu. ft. Springs 3,500 unitsChapter 13 Budgeting and Standard Cost Systems C. Desired inventories at March 31: 569 Direct materials: Fabric 9,000 sq. yds. Finished products: Wood 20,000 lineal ft. William 2,000 units Filler 5,000 cu. ft. Kate 900 units Springs 7,500 units d. Direct materials used in production: In manufacture of William: Fabric 4.0 sq. yds. per unit of product Wood 16 lineal ft. per unit of product Filler 3.8 cu. ft. per unit of product Springs 14 units per unit of product In manufacture of Kate: Fabric 2.5 sq. yds. per unit of product Wood 12 lineal ft. per unit of product Filler 3.2 cu. ft. per unit of product Springs 10 units per unit of product e. Anticipated purchase price for direct materials: Fabric $9.00 per sq. yd. Filler $1.50 per cu. ft. Wood 5.00 per lineal ft. Springs 2.00 per unit f. Direct labor requirements: William: Framing Department 2.5 hrs. at $15 per hr. Cutting Department 1.0 hr. at $12 per hr. Upholstery Department 3.0 hrs. at $16 per hr. Kate: Framing Department 1.5 hrs. at $15 per hr. 0.5 hr. at $12 per hr. Cutting Department Upholstery Department 2.0 hrs. at $16 per hr. Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. 4. Prepare a direct labor cost budget for March