AL Marai Inc. is preparing its annual budgets for the year ending December 31, 2011. Accounting assistants furnish the data shown below. Detail Product AR1 Product AR 2 Sales Budget Anticipated Volume in units 40000 20000 Unit Selling price 250 350 Production Budget: Desired ending finished goods units 2050 1050 Beginning finished goods units 3000 1000 Direct materials budget: Direct materials per unit (pounds) 20 30 Desired ending direct materials pounds 3000 1500 Beginning direct materials pounds 4000 1000 Cost per pound 30 40 Direct labor budget: Direct labor time per unit 0.45 0.65 Direct labor rate per hour 120 150 Budgeted income statement: Total unit cost 122 212 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $665,000 for product AR1 and $365,000 for product AR2, and administrative expenses of $450,000 for product ARI and $350,000 for product AR2. Income taxes are expected to be 33%. Instructions: Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not he prepared.( 2 marks each) A. Sales B. Production C. Direct materials D. Direct labor E. Income statement (Note: Income taxes arenot allocated to the products.)