'I/ 4. Total direct labor cost in Fabrication Dept, $293,850 PR 22-3A Budgeted income statement and supporting budgets Obi. 4 The budget director of Birding Homes 8: Feeders 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 January: a. Estimated sales for January: Bird house ........................................... 15,000 units at $25 per unit Bird feeder ........................................... 40,000 units at $15 per unit b. Estimated inventories at January 1: Direct materials: Finished products: Wood ........ 600 ft. Bird house ....... 1,000 units at $15 per unit Plastic ........ 1.000 lbs. Bird feeder ....... 2,500 units at $8 per unit c. Desired inventories at January 31: Direct materials: Finished products: Wood ........ 500 ft. Bird house ....... 1,500 units at $15 per unit Plastic ........ 1,250 lbs. Bird feeder ....... 3,000 units at $8 per unit (1. Direct materials used in production: In manufacture of bird house: In manufacture of bird feeder: Wood ............ 0.80 ft. per unit of product Wood ........... 0.20 ft. per unit of product Plastic ............ 0.10 lb. per unit of product Plastic ........... 1.00 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood ............ $2.50 per ft. Plastic ........... $0.80 perlb. f. Direct labor requirements: Bird house: Fabrication Department ........................................ 040 hr. at $18 per hr. Assembly Department .......................................... 020 hr. at $12 per hr. Bird feeder: Fabrication Department ........................................ 0.25 hr. at 518 per hr. Assembly Department .......................................... 010 hr. at $12 per hr. g. Estimated factory overhead costs for January: Indirect factory wages $40,000 Power and light $10,000 Depreciation of plant and equipment 20,000 Insurance and property tax 5,000 h. Estimated operating expenses for January: Sales salaries expense $125,000 Advertising expense 80,000 Office salaries expense 40,000 Depreciation expense-office equipment 4,000 Travel expense-selling 25,000 Office supplies expense 2,500 Miscellaneous administrative expense 3,500i. Estimated other revenue and expense for January: Interest revenue $4,540 Interest expense 3,000 j. Estimated tax rate: 25% Instructions 1. Prepare a sales budget for January. 2. Prepare a production budget for January. 3. Prepare a direct materials purchases budget for January. 4. Prepare a direct labor cost budget for January. 5. Prepare a factory overhead cost budget for January. 6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $9,000, and work in process at the end of January is estimated to be $10,500. 7. Prepare a selling and administrative expenses budget for January. 8. Prepare a budgeted income statement for January