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Indigo Company makes and sells artistic frames for pictures. The controller is responsible for preparing...

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Accounting

Indigo Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has
accumulated the following information for 2022:
Indigo has a labour contract that calls for a wage increase to $8.00 per hour on April 1. It has installed new labour-saving machinery,
which will be fully operational by March 1.
Indigo expects to begin the year with 16,500 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the
following month's sales, plus 50% of the next month's sales.
(a) Prepare a production budget and a direct labour budget for Indigo by month and for the first quarter of the year. The direct labour
budget should include direct labour hours and show the detail for each direct labour cost category. (Round DLH per unit and labor rate
per hour to 2 decimal places, eg.12.25 and all other answers to 0 decimal places, e.g.125.)
INDIGO COMPANY
Production Budget
For the quarter ending March 31,2022
Jan
Estimated unit sales
Total required
Begining inventory
Feb
Mar
Mar
INDIGO COMPANY
Direct Labour Budget
For the quarter ending March 31,2022
Jan
Production in units
Total hours required
Feb
Mar
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