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CoursHeroTranscribedText: Wickham Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Ron Bahar, the controller, is responsible for preparing Wickham's master budget Question list K and has accumulated the following information for 2021: (Click the icon to view some of the financial information.) i (Click the icon to view additional information.) Read the requirements. Question 3 Requirement 1. Prepare a production budget and a direct manufacturing labor cost budget for Wickham Company by month and for the first quarter of 2021. You may combine both budgets in one Question 4 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, Question 5 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 nearest whole number.) Wickham Company Question 6 Budget for Production and Direct Manufacturing Labor For the Quarter Ended March 31, 2021 January February March Question 7 Budgeted sales (units) Add target ending finished goods inventory (units) Question 8 Total requirements (units) Deduct beginning finished goods inventory (units) Units to be produced O Question 9 Direct manufacturing labor-hours per unit Total hours of direct manufacturing labor time needed Question 10Requirements Requirements - X ent 1. Prepa d for the first The direct ma pry. chedule by p 1. Prepare a production budget and a direct manufacturing labor cost budget for for the three m inish by prepa Wickham Company by month and for the first quarter of 2021. You may the direct manu ot round interi combine both budgets in one schedule. The direct manufacturing labor cost per unit] to the budget should include labor-hours and show the details for each labor cost category. Bud 2. What actions has the budget process prompted Wickham's management to take? 3. How might Wickham's managers use the budget developed in requirement 1 to better manage the company? ted sales (units) arget ending finish requirements (uni Print Done uct beginning finish s to be produced- X Data table uarte 2021 onths factur January February March April May e neare Estimated sales in units 14,000 17,000 6,000 8,000 8,000 Selling price $ 57.00 $ 51.00 $ 51.00 $ 51.00 $ 51.00 Direct manufacturing labor-hours per unit 3.5 3.5 2.0 2.0 2.0 Wage per direct manufacturing labor-hour $ 8.00 $ 8.00 $ 8.00 $ 11.00 $ 11.00 getel I targ al red Print Done educt bments More Info X More info 1. Prepa d for the firs direct ma In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.50 per hour, worker's compensation insurance of $0.20 per pry. edule by p hour, employee medical insurance of $0.40 per hour, and Social Security taxes. for the three sh by prepa Assume that as of January 1, 2021, the Social Security tax rates are 7.5% for the direct ma round interi employers and 7.5% for employees. The cost of employee benefits paid by per unit] to t Wickham on its direct manufacturing employees is treated as a direct manufacturing labor cost. Bud Wickham has a labor contract that calls for a wage increase to $11 per hour on April 1, 2021. New labor-saving machinery has been installed and will be fully operational by March 1, 2021. Wickham expects to have 20,000 frames on hand at December 31, 2020, 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 ed sales (units) sales. arget ending finish requirements (uni uct beginning finish Print Done ts to be produced ect manufacturing la

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