Calculator eBook Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for Januarys a Estimated sales for January: Birdhouse 6,000 units at $55 per unit Bird feeder 4,500 units at $75 per unit b. Estimated inventories at January 1: Direct materials: Wood 220 ft. Plastic 250 lb. Finished products: Birdhouse 300 units at $23 per unit 240 units at $34 per unit Bird feeder c. Desired inventories at January 31: Direct materials: 180 ft. Wood Plastic 210 Ib. Finished products: 340 units at $23 per unit Birdhouse Bird feeder 200 units at $34 per unit d. Direct materials used in production 200 units at $34 per unit Bird feeder d. Direct materials used in production: In manufacture of BirdHouse 0.80 ft. per unit of product Wood Plastic In manufacture of Bird Feeder: 0.50 lb. per unit of product 1.20 ft. per unit of product 0.75 lb. per unit of product Wood Plastic e. Anticipated cost of purchases and beginning and ending inventory of direct materials $8.00 per ft. Wood $1.20 per Ib. Plastic f. Direct labor requirements: Birdhouse: 0.20 hr. at $15 per hr 0.30 hr. at $12 per hr Fabrication Department Assembly Department Bird Feeder 0.40 hr. at $15 per hr 0.35 hr. at $12 per hr Fabrication Department Assembly Department g. Estimated factory overhead costs for January $80,000 25,000 8,000 2,000 Indirect factory wages Depreciation of plant and equipment Power and light 2,000 Insurance and property tax h. Estimated operating expenses for January: $90,000 20,000 18,000 800 500 200 5,000 250 450 Sales salaries expense Advertising expense Office salaries expense Depreciation expense office equipment Telephone expense-selling Telephone expense administrative Travel expense-selling Office supplies expense Miscellaneous administrative expense i. Estimated other income and expense for January $300 Interest revenue 224 Interest expense J. Estimated tax rate: 30% 4. Prepare a direct labor cost budget for January. Birds of a Feather Inc. Direct Labor Cost Budget For the Month Ending January 31 Fabrication Total Assembly Department Department Hours required for production: Birdhouse Bird feeder Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for January Birds of a Feather Inc. Factory Overhead Cost Budget For the Month Ending January 31 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Total