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Shibby Shades Incorporated manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company's master budget. In compiling the budget data for $20$x$1,$ Demarest has learned that new automated production equipment will be installed on March $1.$ This will reduce the direct labor per frame from $3\mathrm{.}0$ hours to $2\mathrm{.}75$ hours.

Labor$-$related costs include pension contributions of $$0\mathrm{.}80$ per hour, workers' compensation insurance of $$0\mathrm{.}50$ per hour, employee medical insurance of $$2$ per hour, and employer contributions to Social Security equal to $7\mathrm{.}00$ percent of directlabor wages. The cost of employee benefits paid by the company on its employees is treated as a direct$-$labor cost. Shibby Shades Incorporated has a labor contract that calls for a wage increase to $$18\mathrm{.}00$ per hour on April $1,201.$ Management expects to have $29,500$ frames on hand at December $31,20$x$0,$ and has a policy of carrying an end$-$of$-$month inventory of $100$ percent of the following month's sales plus $50$ percent of the second following month's sales.

These and other data compiled by Demarest are summarized in the following table.

$\backslash$table$[[,$January,February,March,April,May$],[$Direct$-$labor hours per unit,$3\mathrm{.}0,3\mathrm{.}0,2\mathrm{.}75,2\mathrm{.}75,2\mathrm{.}75],[$Wage per direct$-$labor hour,$$16\mathrm{.}00,$$$16\mathrm{.}00,$$$16\mathrm{.}00,$$$18\mathrm{.}00,$$$18\mathrm{.}00$

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