Find Nonmanufacturing Cost Budget and Budgeted Income Statements.

Bramlett Company produces and sells two different product: Thingone and Thingtwo. Company uses two different production department dedicated for each product. All the other activities in the company are combined in two Support Departments. These Support Departments are responsible of supplying services to the production departments these costs are allocated to each department by using the manufacturing labor hour used. Addition to all the Company has Marketing and Distribution activity fixed costs $680,000 and $362,000 respectively. In 2014 the following data is gathered to prepare the 2015 budget: 2015 PROJECTED SALES Product Units Price 2015 INVENTORIES IN UNITS Begining Inventory Ending Inventory 20,000 25,000 60,000 $165 Thingone Thingtwo 40,000 $220 8,000 9,000 Budgeted AMOUNT USED PER 2015 INVENTORIES IN UNITS UNIT Direct Unit Unit Thingone Thingtwo Price Materials Begining Inventory 32,000 Ending Inventory 36,000 A kg $12 4 5 B kg $5 2 3 29,000 32,000 unit $3 0 1 6,000 7,000 Product DIRECT MANUFACTURING LABOR HOURS Hours per Unit Rate per Hour 2. $16 Thingone Thingtwo 3 $16 Fixed Variable Support Department Sup1 Cost Cost $1,200,000 $3 Sup2 $2,640,000 $2 Variable Cost Thingone Thingtwo Non- Fixed Manufacturing Cost Costs Marketing $400,000 Distribution $300,000 $2 $4 $0,5 $0,8 COMPANY'S ASSUMPTIONS IN PREPARATION OF THE BUDGET 1. The FIFO inventory method is used. 2. Direct Method used while allocating the support department costs to operating departments. 3. Cost of materials and labor are given as an average value therefore there is no price difference expected between months