R Homework: Module 2 Exercises Question 3, E6-29 (similar to) > Part 1 of 6 HW Score: 20%, 4 of 20 points > Points: 0 of 10 Save Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Kern, the controller, is responsible for preparing Roletter's master budget and has accumulated the following information for 2018: (Click the icon to view additional information.) (Click the icon to view some of the financial information.) Read the requirements. Co Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Roletter Company by month and for the first quarter of 2018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labor by month, then quarter. (Enter the direct manufacturing labor-hours per unit to one decimal place, X.X. Do not round interim calculations, and then enter all amounts in the budget [other than the direct manufacturing labor-hours per unit] to the Roletter Company Budget for Production and Direct Manufacturing Labor Data table For the Quarter Ended March 31, 2018 2018 January February March D Budgeted sales (units) 12,000 14,000 5,000 January February March April May Add target ending finished goods inventory (units) Total requirements (units) 16,500 Estimated sales in units 12,000 14,000 Selling price $ 54.00 $ 50.50 $ 5,000 50.50 $ 10,000 10,000 50.50 $ 50.50 Deduct beginning finished goods inventory (units) Units to be produced Direct manufacturing labor-hours per unit Wage per direct manufacturing labor-hour 3.0 3.0 1.0 1.0 1.0 $ 12.00 $ 12.00 $ 12.00 $ 11.00 $ 11.00 Tra Direct manufacturing labor-hours per unit 3.0 3.0 1.0 Total hours of direct manufacturing labor time needed Print Done facturing labor cos More info In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.40 per hour, worker's compensation insurance of $0.10 per hour, employee medical insurance of $0.30 per hour, and Social Security taxes. Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Roletter on its direct manufacturing employees is treated as a direct manufacturing labor cost. Roletter has a labor contract that calls for a wage increase to $11 per hour on April 1, 2018. New labor-saving machinery has been installed and will be fully operational by March 1, 2018. Roletter expects to have 16,500 frames on hand at December 31, 2017, and it has a policy of carrying an end-of-month inventory of 100% of the following month's sales plus 50% of the second following month's sales