I provided the info I could do, under the ----------- when you scroll down is where I need help. Thanks!
LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget.
The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 20Y2.
You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets.
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Total selling and administrative expenses$219,400
The sales budget often uses the prior year's sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricin changes, and expected industry and general economic conditions. LearnCo has completed reviewing its prior year's sales and has prepared the following sales budget. After reviewing LearnCo's sales budget, you note that three numbers have been omitted. The company's controller has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fill in the missing amounts. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need prepared. Direct Materials Purchases Budget Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Direct Labor Cost Budget Direct Labor Data Table \begin{tabular}{lcc} & Gluing & Assembly \\ \hline Hours required per unit: & & \\ Basic abacus & 0.10 & 0.10 \\ Deluxe abacus & 0.10 & 0.20 \end{tabular} Labor hourly rate: Gluing Assembly Units to be produced (from Production Budget): Basic abacus Deluxe abacus LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Hours required for production: departmental schedules, which normally separate factory overhead costs into fixed and variable year. For simplicity, LearnCo has not separated costs in this manner. After reviewing the following factory overhead cost budget, you note that LearnCo has completed t Cost of Goods Sold Budget Shade LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 20Y2 Finished goods inventory, January 1, 20Y2 Work in process inventory, January 1, 20Y2 $2,010 Direct materials: \begin{tabular}{|l|r|} \hline Direct materials inventory, January 1, 20 2 & \\ \hline Direct materials purchases & $2,000 \\ \hline Cost of direct materials available for use & $2,888 \\ \hline Less direct materials inventory, December 31, 20Y2 & 1,800 \\ \hline Cost of direct materials placed in production & $3,088 \\ \hline \end{tabular} Direct labor Factory overhead Total manufacturing costs Total work in process during period Less work in process inventory, December 31, 20Y2 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, December 31, 20 Y2 Cost of goods sold Selling/Admin. Expenses Budget LearnCo Selling and Administrative Expenses Budget For the Year Ending December 31, 20Y2 Selling expenses: \begin{tabular}{|l|l|l|} \hline Sales salaries expense & $45,000 & \\ \hline Advertising expense & 15,000 & \\ \hline Travel expense & 5,400 & \\ \hline Total selling expenses & & $65,400 \\ \hline Administrative expenses: & & \\ \hline Officers' salaries expense & $85,000 & \\ \hline Office salaries expense & 35,000 & \\ \hline Office rent expense & 26,000 & \\ \hline Office supplies expense & 6,400 & \\ \hline Miscellaneous administrative expenses & 1,600 & \\ \hline Total administrative expenses & & 154,000 \\ \hline \end{tabular} Budgeted Income Statement For the Year Ending December 31, 20 Y2 14 Net income 4. LearnCo's controller believes that the company can decrease its selling expenses by 10% and its administrative expenses by 15%. How much would income before income tax increase if these expense cuts are implemented? Round your answer to the nearest dollar
