Ash Creek Company is preparing its budgeted income statement for 2012. Relevant data pertaining to its sales, production, and direct materials budgets can be found in Do it! 20-3. In addition, Ash Creek budgets 0.3 hours of direct labor per unit, labor costs at $14 per hour, and manufacturing overhead at $20 per direct labor hour. Its budgeted selling and administrative expenses for 2012 are $7,000,000.
(a) Calculate the budgeted total unit cost.
(b) Prepare the budgeted income statement for 2012.