ACCOUntIng 2020 - EXcel 2Reese Co manufactures RC cars that sell for $33 each. Each RC car requires 2 pieces of lightweight plastic, which costs $2.50 per piece Each RC car takes approximately 45 minutes to build, and the labor rate averages $15 per hour. Reese Co has the following inventory policies:Ending finished goods inventory should be 35 percent of next month's salesEnding direct materials inventory should be 25 percent of next month's production.June -750Julv -600August -750September-730October -820November -670Variable manufacturing overhead is incurred at a rate of $0.35 per unit produced. Annual fixed mnaufacturing overhead is estimated to be $7,800 ($650 per month) for expected production of 7,800 units for the year. Selling and administrative expenses are estimated at $820 per month plus $0.75 per unit sold. Prepare the following budgets for each month (July, August, and September) as well as Quarter 3 totals.???Complete the legend by entering all relevant data you will need to complete the following budgets. You will need to use this legend in all formulas for the following budgets.???Sales budget???Production budget???Direct materials purchases budget???Direct labor budget???Manufacturing overhead budgetNote 1: the only cells that may have hard-keyed values are the shaded cells in the legend. All other cells should have a formula or a cell reference.Note 2: only the cells with question marks will be graded. Any other sections are provided for your ease of us

B D E G H 1. Legend Sales Price 33.00 $ perunit sold Budgeted Sales Units: Direct materials (per RC car) pieces/RC car June Direct materials cost $ per piece July Direct labor (per RC car) hours/RC car August Direct laborcost $ perhour September Variable overhead $ perunit produced October Fixed overhead (monthly cost) $ per month November Fixed overhead (annual cost) $ per year Budgeted annual units RC cars Policies: Variable selling and administrative expenses $ perunit sold Ending Finished Goods Fixed selling and administrative expenses $ per month Ending Raw Materials 2. Salesbudget Juty August September 3rd Quarter October November Budgeted unit sales Sales price Budgeted sales revenue 3. Production budget July August September 3rd Quarter October November Sales units 600.00 750.00 730.00 2,080.00 820.00 670.00 Ending balance finished goods 2 Beginning balance finished goods ? ? ? Budgeted production units ? 4. Directmaterials purchases July August September 3rd Quarter October November Budgeted production units ? Material requirements perunit ? ? Total material needed for production ? Ending direct materials inventory Beginning direct materials inventory ? Budgeted direct materials purchases Materials cost per piece Budgeted cost of direct materials purchases 5. Directlaborbudget July August September 3rd Quarter Budgeted production Direct labor requirements per unit Direct laborhours required Direct labor rate Budgeted direct labor cost ? ? 6. Manufacturing overhead budget July August September 3rd Quarter Budgeted production ? Variable manufacturing overhead rate ? ? Budgeted variable manufacturing ? Fixed manufacturing overhead ? Budgeted manufacturing overhead