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Exercise 9-10 (Part Level Submission) Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020. February January 10.200 11,300 March 8,700 $47.20 1.7 Estimated unit sales Sales price per unit Direct labor hours per unit Wage per direct labor hour April 9,000 $47.20 1.7 May 8,800 $47.20 $50.10 2.1 $47.20 2.1 1.7 $8 $8 $8 $9 $9 Lowell has a labor contract that calls for a wage increase to $9 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lowell expects to begin the year with 18,110 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 70% of the second following month's sales. Prepare a production budget for Lowell Company by month and for the first quarter of the year. LOWELL COMPANY Production Budget For the Quarter Ending March 31, 2020 Jan Feb Mar Total Expected Unit Sales 10200 11300 8700 Add Desired Ending Finished Goods Unit 17390 15000 15160 Total Required Units 27590 26300 23860 Less Beginning Finished Goods Unit -18110 -17390 -15000 SI Required Production Units 9480 8910 8860 27250 (b) Prepare a direct labor budget for Lowell Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.) LOWELL COMPANY Direct Labor Budget Jan Feb Mar Total $

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