8 Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which art 2 costs $2.50 per foot. Each frame takes approximately 30 minutes to 3 build, and the labor rate averages $14 per hour. Iguana has the following inventory policies: . Ending finished goods inventory should be 40 percent of next ints month's sales. Ending direct materials inventory should be 30 percent of next 8 month's production. 3:0812 Expected unit sales (frames) for the upcoming months follow: March 370 Book April 440 May 490 June 590 Print July 565 August 615 efere Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,500 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Incorporated, had $11,200 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct materials purchases for March 1 totaled $4,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $340 in depreciation. During April, Iguana plans to pay $3,500 for a piece of equipment. Required: Complete Iguana's budgeted income statement for quarter 2. Note: Round cost per unit in intermediate calculations to 2 decimal places. IGUANA, INCORPORATED Budgeted Income Statement For the Quarter Ending June 2nd April May June Quarter Total Budgeted Sales Revenue Budgeted Cost of Goods Sold Budgeted Gross Margin $ 0 $ o$ 0$