Oak Creek Company is preparing its budgeted income statement for 2010. Relevant data pertaining to its sales, production, and direct materials budgets can be found in Do It! exercise 23-2 on page 1044.

In addition, Oak 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 2010 are $7,000,000.

(a) Calculate the budgeted total unit cost.

(b) Prepare the budgeted income statement for 2010.