GENERAL INFORMATION AND INSTRUCTIONS: - This assignment is to be completed individually, OR in a team of 2 , OR in a team of 3. - If you choose to work on this assignment in a team, you may use whatever collaboration method you would like and is most convenient for your group. Possible tools are Google Docs, OneDrive, Microsoft TEAMS. Your final completed assignment must be properly formatted in a PDF form before submitting in the D2L Dropbox. - Only ONE completed assignment is to be handed in for the team. It will therefore be submitted in the D2L Dropbox by only one group member. Please be sure to clearly indicate the names and student numbers of all of the group members. - Ensure that your answers show all of your work and calculations and are labelled clearly. Consider the following information pertaining to Ellawill Company: A) Ellawill Company is in the business of manufacturing and selling surf boards, their only product. B) The surf boards are made entirely out of fibre glass and no other material. C) The company uses the Traditional Costing Method to allocate all manufacturing overhead to the surf boards produced. Direct labour hours has been chosen as the allocation base. You are the lead manager responsible for preparing the Operating Budget(s) portion of the overall Master Budget of the company for 2021. To assist you in the preparation of all necessary budgets a junior accounting employee has gathered of the information that you have requested. The following information has been provided: Additional Information Provided: The Manufacturing Overhead Budget has already been prepared and compiled by a team of managers responsible for these cost areas. The total budgeted manufacturing overhead cost for 2021 appearing on this budget is $279,600. The following data was provided to enable Selling and Administrative Expenses to be budgeted for 2021 . (a) Total sales staff compensation expense is a mixed cost which includes a fixed cost element of $80,000 and a variable cost element of $0.50 per unit sold. (b) Advertising expense for 2021 is budgeted to increase by 10% over total advertising incurred during 2022 (last year) which was $40,000. (c) Office supplies expense is expected to be incurred at a rate of $0.80 per unit sold. (d) Executive salaries expense for 2022 (last year) related to 3 managers, each of whom received salary of $60,000. No raises in these salaries are expected for 2021 . However, one of the managers retired at the end of 2022 and her replacement for 2021 will be paid a salary only two-thirds of the salary amount that the other managers will be paid. Required: Your work must be clearly labelled and neatly presented. PART A: Prepare the following for 2021 : 1.) Sales Budget 2.) Production Budget 3.) Direct Materials Budget 4.) Direct Labour Budget PART B: Calculate the following for 2021 : 1.) Predetermined manufacturing overhead allocation rate for 2021 2.) Budgeted cost to manufacture one surf board for 2021 3.) Budgeted Total Cost of Goods Sold for 2021 PART C: Prepare the following for 2021 : 1.) Selling and Administrative Expense Budget Note: It is not necessary to present the variable costs separately from the fixed costs. 2.) Budgeted Income Statement (in good form, ie. proper titles and wording) for 2021. (Ignore income taxes) GENERAL INFORMATION AND INSTRUCTIONS: - This assignment is to be completed individually, OR in a team of 2 , OR in a team of 3. - If you choose to work on this assignment in a team, you may use whatever collaboration method you would like and is most convenient for your group. Possible tools are Google Docs, OneDrive, Microsoft TEAMS. Your final completed assignment must be properly formatted in a PDF form before submitting in the D2L Dropbox. - Only ONE completed assignment is to be handed in for the team. It will therefore be submitted in the D2L Dropbox by only one group member. Please be sure to clearly indicate the names and student numbers of all of the group members. - Ensure that your answers show all of your work and calculations and are labelled clearly. Consider the following information pertaining to Ellawill Company: A) Ellawill Company is in the business of manufacturing and selling surf boards, their only product. B) The surf boards are made entirely out of fibre glass and no other material. C) The company uses the Traditional Costing Method to allocate all manufacturing overhead to the surf boards produced. Direct labour hours has been chosen as the allocation base. You are the lead manager responsible for preparing the Operating Budget(s) portion of the overall Master Budget of the company for 2021. To assist you in the preparation of all necessary budgets a junior accounting employee has gathered of the information that you have requested. The following information has been provided: Additional Information Provided: The Manufacturing Overhead Budget has already been prepared and compiled by a team of managers responsible for these cost areas. The total budgeted manufacturing overhead cost for 2021 appearing on this budget is $279,600. The following data was provided to enable Selling and Administrative Expenses to be budgeted for 2021 . (a) Total sales staff compensation expense is a mixed cost which includes a fixed cost element of $80,000 and a variable cost element of $0.50 per unit sold. (b) Advertising expense for 2021 is budgeted to increase by 10% over total advertising incurred during 2022 (last year) which was $40,000. (c) Office supplies expense is expected to be incurred at a rate of $0.80 per unit sold. (d) Executive salaries expense for 2022 (last year) related to 3 managers, each of whom received salary of $60,000. No raises in these salaries are expected for 2021 . However, one of the managers retired at the end of 2022 and her replacement for 2021 will be paid a salary only two-thirds of the salary amount that the other managers will be paid. Required: Your work must be clearly labelled and neatly presented. PART A: Prepare the following for 2021 : 1.) Sales Budget 2.) Production Budget 3.) Direct Materials Budget 4.) Direct Labour Budget PART B: Calculate the following for 2021 : 1.) Predetermined manufacturing overhead allocation rate for 2021 2.) Budgeted cost to manufacture one surf board for 2021 3.) Budgeted Total Cost of Goods Sold for 2021 PART C: Prepare the following for 2021 : 1.) Selling and Administrative Expense Budget Note: It is not necessary to present the variable costs separately from the fixed costs. 2.) Budgeted Income Statement (in good form, ie. proper titles and wording) for 2021. (Ignore income taxes)