Learnco Lama manufacture and is one broduct, an abacus for car, with two mode the model and the Dead. The company operations on laruary 1, 2011 and is planning for 2012, send year of operation by preparing budgets from its budget The company is trying to decide how many units to manufacture, how much might red in Grect materis one remor, and what their factory overhead come might be thaton, company Interested in Doeting for sig sodastrative costs, and in creating busted income towing a prediction of not come 2012 You have been med to make the contrailer of Learno in preparing the 2012 Budgets Sales Budget The sales budget on the prior year's sales as a starting point and the sales antes are revised for various factors such as plantadvertising and romotion, petting charges, and meet Industry and general economic conditions. Leam has completed viewing ts per year's sales and has prepared the following a budget Anar reviewing Corsa Budget you not that tree numbers have been omitted. The company's controler has told you that the units sold for the basic and Demos expected to be the man the misung amounts Learn Co Sales Budget For the Year Ending December 31, 2012 Unit Sales Unit Selling Total Product Volume Price Sales Basic Abacus $8 $268.000 Deluxe Abacus 132.000 Totals 72,000 3720.000 The production would be grated with the sales budget to ensure the production and we are curing the year. The production Distates the number of units to be manufactured to meet budgeted sales and desired inventory levels You note that Learn has amitted substrate ng production and then you may need to ember trom the sales budget you prepared Learn.co Prod Action Budget For the Year Ending December 31, 2012 Units Basic Units Deluxe Expected units to be sold for Sales Budget Desired ending inventory, December 31, 2012 1.000 2.000 Total units available Estimated beginning wentary, Suary 1, 2012 (1.050) (2100) Total units to be reduced Dr Materials Purchases Budget The put the intered with the most trusted during the year fore you may changes to the budget, you view the domation on the recital and the procedure Act Durch die wichtstrative Out you curve that we were the two in the main may need to me Direct Material Data Torte sale buget and production budget Breed Where on your heart Direct Materials Data Table Wadece bende Page recured per + 2 Deubacus 2 Cast per Woodpe 20 50.20 Units to be produced from Production to Learn.co Direct Materials Purchase Budget For the Year Ending December 31, 2012 Direct Materia Wood Pieces Beads Package for production Hata Total I Basic abacus 1 2 Deluxe abacus 2 3 Cost per package: Wood pieces $0.20 Beads $0.20 Units to be produced (from Production Budget): Basic abacus Deluxe abacus Total LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 2012 Direct Materials Wood Pieces Beads Packages required for production: Basic abacus Deluxe abacus Desired inventory, December 31, 2012 2,200 5,000 Total packages available Estimated inventory, January 1, 2012 (3,500) (4,500) Total packages to be purchased Unit price (per package) . X $ Total direct materials to be purchased $58,310 Direct Labor Cost Budget Director cends from the recorded should be coordinated between the production and preparents so that there we ough bor valable for to Before you make any changes to the budget. You review the information on the town Direct Labor Data Tate ind enter the sto se pred from there Buget. At the Direct Last But this fotos thee Labor Data Table you that archase few mombers to the budget in the main You may need to see the Labor Data Table, or from the sales budget production budget and direct material purchases budoes you prepared. Whered, round you to the nearest dollar Direct Labor Data Table Giul Assembly required Basebacus 0.10 0.10 Deubau 0.10 0.20 Labor hulle un $13 A 319 Units to be produced from Production Budget sabacus Deluxe bacs Learn.co Direct Labor Cost Hudget For the Year Ending December 31, 2012 Gluing Assembly Total Hours reared for production Basic bacs Il II Dabar Budo) Babacus Deluxe abacus Learnco Direct Labor Cost Budget For the Year Ending December 31, 2012 Gluing Assembly Hoursecured for production Basic share Deluxe abacus Total Total Hourly rate Total recabar com 3.303,290 Heview angle of the direct cost budget, and the computations for each part of the budget. Tou will need to use the information on the Director Data Table your computation Factory Overhead Cost Budget The factory a cost budou should be integrated with the production budget to ensure that production is not intented curing the war. This tulge may be supported by departments which normally gratefactory overhead costs into fived and variable costs so that department managers may manter and evaluate costs during the year Forty, Leanconot parte contain that Anter reviewing the following factory overhead cost budget, you note that has completed the budget with the exception of one ancourt in the missing amount Learco Factory Overhead Cost Budget The boot out beiged with the button to do the year. The counted by the romaly separate factory overcossued various state and we were the her wing the following federy verte con tudut you note that come to the one Learnco Factory Overhead Cost Budget For the Year Ending December 31, 2012 Indiefactory wages 35.400 Power and Depreciation of plant and equipment TAVO Total factory overnador SH100 Cost of Goods Sold Budget The cost of old det integrates the direct mais purchases budget direct to cost budget and factory at cost dort state and desired for director Anahe goods to be integrated in the cost of good oldu Complete the person of the cost of doods sold budget for learnto, using intormation that follows pred the controller, and sing previous budgets you move pred Learnce Cost of Goode sold Budget For the Year Ending December 31, 2012 Freshed on inventory Saury 1, 2012 59.00 Work in processory. Tay 1, 2017 $2.010 Direct materials CCO MY WO 59,870 $2,010 Learno Cost of Goods Sold Budget For the Year Ending December 31, 2012 Finished goods inventory, January 1, 2012 Work in process Nentory, January 1, 2012 Direct material: Direct materials inventory, January 3, 2012 Direct materiais purchases Cost of direct materials aviable for Direct materials inventory, December 31, 2012 (1.4401 Cost of drect matris placed is production Direct by 10:00 Factory overhead (1,250) Total manufacturing Total work in process during period Work in proces ventory, December 31, 2012 Cost of goods manufactured Cost of finished goods wable for sale Finished goods inventory, December 31, 2017 Cost of goods sold (1.500 15.000 Selling/Admin Expenses Budget The sales bagetischen uted as the starting punt for the sound ministrative expeditiram, budete er in sales may require more tingen.com les paredit selling and administrative expenses bort as follows. This tupet is merely reviewed by you for use on the bulge income statement Learnco Selling and Administrative Expenses Budget For the Year Ending December 31, 2012 Seing expenses prime 545,000 Advertising expense Travel expense 5,600 Total Hingepee 565.400 Administrative DOS Oncers' stars expense $35,000 Osales en 35,000 sad Once rent expense 26,000 Om suples pense 6.400 Meclaneous administrative expenses 1.600 Total aministrative expenses 154,000 Total selling and administrative expenses $219,400 Budgeted Income Statement The Duboeted come statement is prepared syntegrating the sales tudet, cost of goods sold budget and selingarnistrative expenses budget, Action informaton that may be be in area the budgeted income statement are on the flowing budgeted Income Statement Data Table Review the the contes Income Statement Data Table, the complete the budgeted come to that follows the table de computed amount for income tax to the whole dolu Budgeted Income Statement Data Table Review the Budgeted Income Statement Data Table, the complete the budgeted income statement that follows the table. Round the computed amount to income tax to the nearest whole delle Budgeted Income Statement Data Table Interest revenue for the year 12.000 Interest expense for the ye $1,500 Leanco's income tax rate Learnco Budgeted Income Statement For the Year Ending December 31, 2012 Revenue from sales cost of goods sold Grous grot Selling and administrative pense Selling expenses akong Antrative expenses Total seling and administrative expenses Operating income Other revenue and expense Interest revenue Interest expense Income before income tax III Tncome tax Net Income 4. Learn Co'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