7.63 Budgeted income statement. Peterson Pipes prepares detailed budgets for all four quarters of the year. The following information pertains to Peterson's budget for the coming year: Beginning Beginning Finished Direct Materials Materials Goods Revenues Labor Purchases Inventory Inventory First quarter $795.200 $240,000 $235,000 $400,000 $380,000 Second quarter 834.200 244.500 211,200 420.000 390,400 Third quarter 864.450 238.500 999 300 415.000 385.600 Fourth quarter 856.250 248.600 207.500 425,000 391.250 Peterson expects fixed manufacturing overhead to be $150,000, $172,250, $169,250, and $174,300 for quarters 1 through 4, respectively. Also, Peterson expects fixed selling and administrative costs to be $80,000, $95,000, $106,000, and $100,000 for quarters 1 through 4, respectively. Peterson does not incur any expenditures related to vari- able overhead or any variable selling and administrative costs. Finally, Peterson plans to begin and end each quarter with zero work in process inventory. Required: What is Peterson's budgeted contribution margin income statement for the second and third quarters