The following 2017 budget information relates to Target Corporation unit production: Quarter Units 1 20,000 2 25,000 3 30,000 4 50,000 Target would like to prepare a direct labor budget. Each unit requires 1.5 hours of direct labor. The union contract provides for the wage rate to be $12 per hour for the first 2 quarters and a wage increase to $14 per hour on July 1. Prepare a direct labor budget for 2017.

Echo Amplifiers prepared the following sales budget for the first quarter of 2018: It also has this additional information related to its expenses: Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018.

The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional information follows: Materials used in production: Direct labor hours required in production: Prepare the following: a. A production budget for May. b. A direct materials budget for May. c. A direct labor budget for May.

Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.