roduction, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin

Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiners master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employers share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the companys union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,800 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following months projected sales in inventory. Information on the first four months of the coming year is as follows:

	January	February	March	April
Estimated unit sales	35,600	35,000	38,600	38,400
Sales price per unit	$81	$81	$76	$76
Direct labor hours per unit	2.80	2.80	2.50	2.50
Direct labor hourly rate	$16	$16	$18	$18
Direct materials cost per unit	$9	$9	$9	$9

Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.

1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year.

a. Production budget in units:

b. Direct labor budget in hours: Round your answers to two decimal places, if required.

c. Direct materials cost budget:

d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements.

2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted)