Loose knots are acceptable unless you can push them out. Knots on fingers and rabbet ears are acceptable. Knots in hand holds are acceptable ½ the thickness or more can be missing from the top or bottom of the board as long as it remains a functional board. Sides and ends with hand holes slightly off center are acceptable.
With the 7 5/8" Unassembled Hive Body Budget 10 Frame use 7 1/4" Frames and 6 1/2" Foundation.