Need help with #4 and part B

067 930 the overhead Preparation of Individual Budgets During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 10,000 units in the urban region at a unit price of $53 and 9,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 8,000-unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses: Variable Fixed (per unit) (total) Manufacturing costs: Direct materials A4 lb. @ $3.157 b. $12.60 tlabor (0.5 hours per unit) 7.50 $7,650 factory supplies 0.90 4.500 28,800 0.751 22,950 expenses: 22.500 Sales salaries & commissions 1.50 15.000 0.90 3,000 Administrative Office salaries 2.700 Supplies 0.15 1.050 Other 0.08 1.950 *Varies per unit sold, not per unit produced. a. Assuming that the desired ending inventories of materials A and B are 8,000 and 10,000 pounds, respectively, and that work-in-process inventories are immaterial, prepare budgets for the calendar quarter in which the new product will be introduced for each of the following operating factors: Do not use negative signs with any of your answers below. 1. Total sales $ 962,000 Supervisory Salaries 2. Production 27,000 units 3. Material purchase cost Total pounds (lbs.) required for production Desired ending materials inventory Total pounds to be available Beginning materials inventory Total material to be purchased (lbs.) Total material purchases (5) Material A Material B 108,000 54,000 8,000 10,000 116,000 64,000 0 0 116,000 64,000 $ 365,400 $ 297,604 4. Direct labor costs $ 101,250 05 5. Manufacturing overhead costs Fixed Variable Depreciation $ 7,650 Factory supplies 4,500 24,300 Supervisory salaries 28,800 0 Other 22,950 20,250 Total manufacturing overhead Total 7,650 28,800 28,800 43,200 108,450 5 6. Selling and administrative expenses Fixed Variable Total $ 22,500$ 0 $ 22,50C 15,000 28,500 43,500 3,000 17,100 20,100 86,10C Selling expenses: Advertising Sales salaries and commissions Other Total selling expenses Administrative expenses: Office salaries Supplies Other Total administrative expenses Total selling and administrative expenses $ 2,7005 0$ 2,700 1,050 4,050 5,100 1,950 2,160 4,110 11,91C $ 98,01C b. Using data generated in requirement (a), prepare a budgeted income statement for the calendar quarter. Assume an overall effective income tax rate of 30%. Round answers to the nearest whole number, Do not use negative signs with your answers. Clinton Corporation Budgeted Income Statement For the Quarter Ended March 31, 2016 Sales OX Cost of Goods Sold: $ Beginning Inventory - Finished Goods Material: $ Beginning Inventory. Material 0 Material Purchases OX Material Available OX Ending Inventory. Material OX Direct Material Ox Direct Labor OX Manufacturing Overhead Ox Total Manufacturing Cost OX Cost of Goods Available for Sale OX OX Ending Inventory - Finished Goods Cost of Goods Sold OX Gross Profit OX Operating Expenses Selling Expenses OX Administrative Expenses OX OX Total Operating Expenses Income before Income Taxes OX OX Income Tax Expense $ Net Income OX