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Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Graven, controller, is responsible for preparing. Greiner's master budget and has assembled the following data for 2013. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory at December 31, 2013, and has a policy of carrying 35 percent of the following month's projected sales in inventory.
Required:
1. Prepare the following monthly budgets for Greiner Company for the first quarter of 2013. Be sure to show supporting calculations.
a. Production budget in unitsb. Direct labor budget in hoursc. Direct materials cost budgetd. Sales budget
2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of 2013. Be sure to show supporting calculations.
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