For the first quarter of 2020, do the following. (e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar.) This is similar to Illustration 22-12 of your textbook. (f) Prepare a selling and administrative budget. This is similar to illustration 22-13 of your textbook. (g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest dollar.) This is similar to Illustration 22-15 of your textbook. (h) Prepare a cash budget. This is similar to Illustration 22-19 of your textbook. (You will need to prepare schedules for expected collections from customers and expected payments to vendors first. See Illustrations 22-17 and 22-18 of your textbook for guidance.) Serious Business, Inc. The company is preparing its budget for the coming year, 2020. The first step is to plan for the FIRST QUARTER of that coming year. The following information has been gathered from their managers. Sales Information Period November December January February March April May Unit selling price Units 103,000 Actual 92,000 Actual 101,000 Planned 102,000 Planned 104,000 Planned 113,000 Planned 124,000 Planned 11.00 Grading guidelines are on the instructions tab. Finished Goods Inventory Planning The company likes to keep 10% of the next month's unit sales in finished goods ending inventory. 100% Accounts Receivable & Collections Sales on Account Collections Activity Month of Sale Month after Sale Balance at 12/31/19 80% 20% 185,000.00 $ Materials Inventory Costs & Planning Direct Materials Metal Amount Used per Unit 2 lb Cost 1.00 lb $ The company likes to keep 5% of the material needed for the next month's production in raw materials ending inventory. 100% Accounts Payable & Disbursements Purchases on Account Payment Activity Month of Purchase Month after Purchase Balance at 12/31/19 40% 60% 120,000 Direct Labor & Costs Time per Unit Production Pay Rate/Hour 15 minutes 6.00 $ 0.25 0.40 0.45 0.25 Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials Indirect labor Utilities Maintenance Fixed costs per month Salaries Depreciation Property taxes Insurance Janitorial 42,000 16,800 2,675 1,200 1,300 $ 1.30 $ Selling and Administrative Costs Variable costs per unit sold Fixed costs per month Advertising Insurance Salaries Depreciation Other fixed costs 15,000 14,000 72,000 25,000 3,000 Income Taxes Accrued on Monthly Net Income Amounts Accrued Q4 2019, paid January 2020 $ 45% rounded to nearest dollar 200,000 Cash and Financing Matters Cash Balance, 12/31/2019 2020 Minimum Balance Required $ 82,000 648,000 Monthly Dividends Outstanding Shares 2.00 per share 5,000 Line of Credit Limit None Borrowing Increment Required 1,000 Interest Rate 7% Draws First of Month Repayments Last of Month Interest accumulates to the loan balance and is paid in full with each repayment. Additional Item Fixed Asset Purchase Month $ 405,000 February