The Roletter Company makes and sells artistic frames for weddings, graduations, and other special events. Controller Bob Anderson is responsible for preparing the main budget for Roletter and has gathered the following information for 2015:

	2015
	Fireplace	February	Mart	Nisan	May
Estimated sales in units	13,000	16,000	6,000	10,000	10,000
Sale price	58,00 $	50.50 dollars	50.50 dollars	50.50 dollars	50.50 dollars
Direct manufacturing labor-hours per unit	2.0	2.0	1.5	1.5	1.5
Direct production labor-hour wage	12,00 $	12,00 $	12,00 $	11,00 $	11,00 $

In addition to wages, costs directly related to manufacturing labor include retirement contributions of $0.50 per hour, workers' compensation insurance of $0.15 per hour, employee health insurance of $0.40 per hour, and Social Security taxes. are available. Assume Social Security tax rates as of January 1, 2015 are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by Roletter to its employees is considered direct production labor cost.

Roletter has an employment contract with a pay increase of up to $11 per hour on April 1, 2015. New labor-saving machines have been installed and will be fully operational by 1 March 2015. Roletter expects to have 19,000 frames on hand as of December 31, 2014 and has a policy to maintain a month-end inventory of 100% of the next month's sales plus 50% of the next second month's sales. sales.

Requirement 

Prepare a production budget and direct production workforce budget for Roletter Company on a monthly basis and for the first quarter of 2015. You can combine both budgets in one program. The direct manufacturing labor budget should include labor hours and show details for each labor cost category.

Answer rating: 100% (QA)

To prepare the production budget and direct production workforce budget for Roletter Company on a monthly basis and for the first quarter of 2015 we n... View the full answer