$4.)$ Babylon Corporation manufactures and sells a special tea called Black$-$Ceylon Tea $($BCTea$)$ which includes special teas coming from Turkey and Sri Lanka. The following data are available for preparing budgets for $2021.$

Sales: $420,000$ packages of BCTea. Selling price is $$30$ per package.

Direct materials: Each package of BCTea requires $2$ pounds of Black Tea at a cost of $$2$ per pound and $3$ pounds of Ceylon at $$2\mathrm{.}50$ per pound.

Desired inventory levels:

Type of Inventory

BCTea $($paskages$)$

Black Tea $($pounds$)$

Ceylon Tea $($pounds$)$

$\backslash$table$[[$January $1,$December $31],[,120,000],[90,000,100,000],[130,000,120,000]]$

Direct labor. Direct labor time is $20$ minutes per package at an hourly rate of $$12$ per hour.

Selling and administrative experises are expected to be $15\%$ of sales revenue plus $$250,000$

Income taxes are expected to be $30\%$ of income from operations.

The manufacturing overhead budget which is prepared by another manu gerial accountant shows that expected MOH costs will be $150\%$ of difect labor cost.

a$.)$ Prepare the Sales Budget of Babylon Corporation for $2021.$

b$.)$ Prepare the Production Budger of Babylon Corporation for $2021.$

c$.)$ Prepare the budeled income statement for $2021.($Unit cost is the same for $2020$ and $2021).$

d$.)$ Prepare a Flexible Selling und Administrative Expenses Budget for $2021$ with the increments of $5,000$ sales unis for the expected range of $415,000$ and $425,000$ units.

c$.)$ Prepare a Flexible Selling and Administrative Expenses Budget Report for $2021.$

Actual sales amount is $430,000$ units, actiul selling price is $$32$ and actual information of S&A Expenses:

Variable: $15\%$ of Actual Sales

Fixed: $$260,000$