Axiom Mobile Plus company approached you as Management Accounting expert to assist them in preparing their 2013 budget.

They provided you with the following data:

• Expected number of units to be sold in 2013
  • Model 1: 15,000 units
  • Model 2: 10,000 units
• Expected selling Price
  • Model 1: $250
  • Model 2: $200
• Each model requires 5 components (camera, keypad, screen, frame, and motherboard). Model 1 has 2 cameras, while model 2 has only 1 camera.
• Component prices are as follows:
  • Camera: $15
  • Keypads: $10
  • Screen: $20
  • Frame: $3
  • Motherboard: $12
• The company already had a beginning inventory of 3,000 units of each of the above components at a cost of:
  • Camera: $12.50
  • Keypads: $9
  • Screen: $18
  • Frame: $2.75
  • Motherboard: $11.50
• No ending inventory of any component item or finished goods is required.
• Both Mobile models need 5.5 hours of labor at a cost of $5.00 per hour.
• Overhead is allocated at a rate of $15 per direct labor hour.

Required:

• Prepare the following:
  • Sales Budget
  • Component Budget
  • Direct Labor Budget
  • An overhead Budget
• Prepare a budgeted partial income statement till Gross Profit Line