Answer:
Gourmet Grill Company
1. Sales Budget For the Month Ending July 31 
Product             Area Unit               Sales       Unit Selling                 Total
                                                       Volume         Price           Sales
Backyard Chef: Maine                     310              $700      $217,000
                          Vermont                240                750        180,000
                          New Hampshire   360                750        270,000
                          Total                            910                                     667,000
Master Chef:    Maine                    150              1,200         180,000
                          Vermont                110              1,300         143,000
                          New Hampshire   180              1,400       252,000
                          Total                           440                                    575,000
Total revenue from sales                                                         $1,242,000
2. Gourmet Grill Company Production Budget For the Month Ending July 31 Units
Units                                Backyard Chef           Master Chef       Total
Expected units to be sold        910                          440               1,350
Desired inventory, July 31         40                            22                   62 
Total units available                950                          462                1,412
Estimated inventory, July 1      -30                           -32                   62
Total units to be produced    920                          430               1,350
3. Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
                                                   Stamping        Forming       Assembly
                                 Units        Department   Department  Department
Backyard Chef        920            460 hrs           552 hrs         920 hrs            Master Chef            430            258 hrs           344 hrs          645 hrs
Total Hours required
  for production:                          718 hrs           896 hrs      1,565 hrs
Total Hourly rate                        $17                  $15                $14                     
Total direct labor cost           $12,206         $13,440          $21,910
Explanation:
1) Data:
A. Estimated sales for July by sales territory:
Maine:
Backyard Chef 310 units at $700 per unit
Master Chef 150 units at $1,200 per unit
Vermont:
Backyard Chef 240 units at $750 per unit
Master Chef 110 units at $1,300 per unit
New Hampshire:
Backyard Chef 360 units at $750 per unit
Master Chef 180 units at $1,400 per unit
B. Estimated inventories at July 1:
Direct materials:
Grates 290 units
Stainless steel 1,500 lbs.
Burner subassemblies 170 units
Shelves 340 units
Finished products:
Backyard Chef 30 units
Master Chef 32 units
C. Desired inventories at July 31:
Direct materials:
Grates 340 units
Stainless steel 1,800 lbs.
Burner subassemblies 155 units
Shelves 315 units
Finished products:
Backyard Chef 40 units
Master Chef 22 units
D. Direct materials used in production:
In manufacture of Backyard Chef:
Grates 3 units per unit of product
Stainless steel 24 lbs. per unit of product
Burner subassemblies 2 units per unit of product
Shelves 4 units per unit of product
In manufacture of Master Chef:
Grates 6 units per unit of product
Stainless steel 42 lbs. per unit of product
Burner subassemblies 4 units per unit of product
Shelves 5 units per unit of product
E. Anticipated purchase price for direct materials:
Grates $15 per unit
Stainless steel $6 per lb.
Burner subassemblies $110 per unit
Shelves $10 per unit
F. Direct labor requirements:
Backyard Chef:
Stamping Department 0.50 hr. at $17 per hr.
Forming Department 0.60 hr. at $15 per hr.
Assembly Department 1.00 hr. at $14 per hr.
Master Chef:
Stamping Department 0.60 hr. at $17 per hr.
Forming Department 0.80 hr. at $15 per hr.
Assembly Department 1.50 hrs. at $14 per hr.
b) Calculations:
                                                   Stamping        Forming       Assembly
                                 Units        Department   Department  Department
Backyard Chef           1                  0.50 hr             0.60 hr       1.00 hr
Total hours required  920            460 hrs            552 hrs      920 hrs                               
Master Chef                1                0.60 hr             0.80 hr         1.50 hrs
Total hours required  430            258 hrs            344 hrs        645 hrs
Total Hours required
  for production:                             718 hrs            896 hrs     1,565 hrs
c) Gourmet Grill Company's Sales, Production, and Direct Labor Budgets for July detail the sales units under different product categories and areas.  They will guide the management of Gourmet Grill company to make relevant decisions with regard to inventories, production, and sales volume that must be achieved in order to realize the budgets and attin company's objectives.  They are very essential in planning, decision making, and control.  Based on these budgets, performances will be reviewed, analyzed, and accordingly rewarded.