Sandoval Furniture builds high-end hand-made dining tables. Mackenzie Sandoval, the company's owner, has developed the following sales forecast for 2015.
| 1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
| Forecasted sales (tables) |
2,584 |
2,744 |
2,975 |
2,100 |
Because of the time needed to create each table, Sandoval maintains an ending Finished Goods Inventory of 20 percent of the following quarter's budgeted sales. Sandoval has been following this inventory policy for several years. The company ended 2014 with 517 tables on hand.
The standard cost card for a table is as follows:
| Standard Quantity |
Standard Price |
Total Standard Cost |
| American cherry wood |
25 board feet |
|
$4/board foot |
|
|
$100 |
|
| American cherry turning square (legs) |
4 squares |
$9/square |
36 |
| Direct labor |
12 DLH |
$14/DLH |
168 |
| Variable overhead |
12 DLH |
$50/DLH |
600 |
| Fixed overhead |
12 DLH |
$10/DLH |
120 |
| $1,024 |
a) Prepare Sandoval's production budget for 2015. Assume that the desired ending inventory for 2015 is 552 tables. (Round answers to 0 decimal places, e.g. 5,250.)