8 00 Required information [The following information applies to the questions displayed below. Part 1 of 2 Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2022 follow: 10 points Finished Components D57 c12 Skipped 10 pounds 0 2 pounds 2 hours 8 pounds 4 pounds 1 pound 3 hours Requirements for each finished component: RM 1 RM 2 RM 3 Direct labor Product information: Sales price Sales (units) Estimated beginning inventory (units) Desired ending inventory (units) eBook $ 180 12,000 450 300 $ 240 9,000 190 200 References Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds Direct Materials Information RM1 RM2 RM3 $ 2 $ 1.50 $ 0.50 2,900 2,000 700 3,800 1,100 1,900 The firm expects the average wage rate to be $30 per hour in 2022. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. Indirect materials,variable Miscellaneous supplies and tools-variable Indirect labor-variable Supervision-fixed Payroll taxes and fringe benefits-variable Maintenance costs-fixed Maintenance costs-variable Depreciation-fixed Heat, light, and power-fixed Heat, light, and power-variable Total Factory Overhead Information $ 10,000 5,100 42,000 160,000 220,000 17,000 10,040 71,310 43,450 9,000 $ 587,900 Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office Total Selling and Administrative Expense Information $ 57,000 220,000 63,000 4,800 61,000 260,000 3,700 6,000 $ 675,500 points The effective income tax rate for the company is 30%. Skipped Spring Manufacturing Company has had a continuous improvement (kaizen) program for the last two years. According to the kaizen program, the firm is expected to manufacture C12 and D57 with the following specifications: eBook Cost Element Raw material 1 Raw material 2 Raw material 3 Direct labor c12 9 pounds 0 1.8 pounds 1.5 hours D57 7 pounds 3.6 pounds 0.8 pound 2.0 hours References The company specifies that the variable factory overhead is to decrease by 10% while the fixed factory overhead is to decrease by 5%, except for depreciation expenses. The company does not expect the price of the raw materials to change. However, the hourly wage rate is likely to be $30. Required: Assume the firm can attain the expected operating level as prescribed by the kaizen program: 1-a. Prepare the Sales budget for 2022. 1-b. Prepare the Production budget for 2022. 1-c. Prepare the Direct materials purchases budget (units and dollars) for 2022. 1-d. Prepare the Direct labor budget for 2022. 1-e. Prepare the Factory overhead budget for 2022. 1-f. Prepare the cost of goods sold and ending finished goods inventory budgets for 2022. 1-9. Prepare the Selling and administrative expense budget for 2022. 1-h. Prepare the income statement, the last item of which is labeled After-tax Operating Income for 2022. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 1D Req 1E Req 1F Req 1G Reg 1H Prepare the Sales budget for 2022. SPRING MANUFACTURING COMPANY Sales Budget For the Year 2022 C12 D57 Total Sales (in units) Selling price per unit Total revenue $ 0 $ 0 $ Req 1A Req 1B Req 1C Req 1D Req 1E Req 1F Req 1G Req 1H Prepare the Production budget for 2022. SPRING MANUFACTURING COMPANY Production Budget For the Year 2022 C12 D57 Budgeted sales (in units) Total units needed 0 0 Budgeted production (in units) 0 Req 1A Req 18 Req 1C Req 1D Req 1E Req 1F Req 16 Req 1H Prepare the Direct materials purchases budget (units and dollars) for 2022. (Round "Pounds per unit" to 1 decimal place an "Cost per pound" to 2 decimal places.) SPRING MANUFACTURING COMPANY Direct Materials Purchases Budget (units and dollars) For the Year 2022 C12 D57 Raw material (RM) 1: Budgeted production Total RM 1 needed for production 0 0 0 Total RM 1 needed (lbs.) 0 Required purchases of RM 1 (lbs.) 0 Budgeted purchases, RM 1 $ 0 Raw material (RM) 2: Budgeted production RM 2 needed for production 0 0 0 Total RM 2 needed (lbs.) 0 Required purchases of RM 2 (lbs.) 0 Budgeted purchases, RM 2 $ 0 Raw material (RM) 3: Budgeted production RM 3 needed for production 0 0 0 Total RM 3 needed (lbs.) 0 Required purchases of RM 3 (lbs.) 0 Budgeted purchases, RM 3 $ 0 Req 1A Req 1B Req 1C Req 1D Req 1E Reg 17 Req 1G Req 11 Prepare the Direct labor budget for 2022. (Round "Direct labor hours per unit" to 1 decimal place.) SPRING MANUFACTURING COMPANY Direct Labor Budget For the Year 2022 C12 D57 Total Budgeted production Total direct labor hours needed 0 0 0 Budgeted direct labor costs $ 0 Req 1A Reg 1B Req 1C Req 1D Req 1E Req 1F Req 1G Req 1H Prepare the Factory overhead budget for 2022. (Round your final answers to the nearest dollar.) SPRING MANUFACTURING COMPANY Factory Overhead Budget For the Year 2022 Original variable OH costs: $ 0 Total variable factory overhead Reduction rate for variable OH costs Budgeted variable OH Original fixed OH: $ 266,526 $ 0 Total cash fixed factory overhead Reduction Rate for Cash Fixed OH Costs % Budgeted Cash Fixed OH 0 $ 0 Total budgeted fixed OH Total bugdeted factory OH $ 266,526 Req 1A Req 1B Req 1C Req 1D Req 1E Reg 1F Req 1G Reg 11 Prepare the Cost of goods sold and ending finished goods inventory budgets for 2022. (Do not round intermediate calculations. Round "Cost per unit" to 5 decimal places.) SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2022 C12 D57 Total Sales volume 0 Cost of goods sold $ o $ 0 $ 0 Ending finished goods inventory Budgeted ending inventories $ 0 $ 0 $ 0 Req 1A Req 1B Req 1C Req 1D Req 1E Req 1F Req 1G Req 1H Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2022. SPRING MANUFACTURING COMPANY Selling and Administrative Expense Budget For the Year 2022 Selling expenses: $ 0 Administrative expenses: $ 0 Total selling and administrative expenses $ 0 Req 1A Req 1B Req 1C Reg 1D Req 1E Reg 1F Req 1G Req 11 Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2022. (Round per unit" to 5 decimal places. Do not round any other intermediate calculations. Round your answers to the nearest wh dollar.) SPRING MANUFACTURING COMPANY Budget Income Statement For the Year 2022 C12 D57 Total $ 0 0 $ 0 $ 0 $ 0 $ 0 $ 0