Oak Creek Company is preparing its budgeted income statement for 2012. Relevant data pertaining to its sales, production, and direct materials budgets are found in D10-13.
In addition, Oak Creek budgets 0.3 hours of direct labour per unit, labour costs at $14 per hour, and manufacturing overhead at $20 per direct labour hour. Its budgeted selling and administrative expenses for 2012 are $7 million.
Instructions
(a) Calculate the budgeted total unit cost.
(b) Prepare the budgeted income statement for 2012?