ning Objective 3 Problems Group A manufacturing 7 rials, die coduction, direct materials, di -39A Preparing bats COGS 560,690 3. POHRS labor, overhead, COGS, and S&A ep luber Batting Company manufactures wo Huber sells the bats to The Huber Batting Compar primary products al adult bat, designed Sporting goods stores, and all adult bat sells for $65. Hu the year as retailer ing an operating budget-sales, product A, COGS, and S&A expense budgets wood baseball bats. Huber's two Products are a youth hardesigned for children and young teens, and designed for high school and college aged players. Huber sells the Boods stores and all sales are on account. The youth but sells for $35 sells for $65) Huber's bieber sales volume is in the first three months as retailers prepare for the spring baseball season. Huber's balance sheet December 31, 2016, follows: HUBER BATTING COMPANY Balance Sheet December 31, 2016 Assets $ 65,810 95.000 Current Assets: $ 15,000 21,600 Accounts Receivable Raw Materials Inventory 12,000 17.210 Finished Goods Inventory Total Current Assets Property, plant, and Equipment Equipment 115,000 Less: Accumulated Depreciation (20,000) Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par 5 130,000 Retained Earnings 20,310 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 160,810 $ 10,500 150,310 $ 160,810 Other data for Huber Batting Company for the first quarter of 2017: Budgeted sales are 1.300 youth bats and 3.100 adult bars. Finished Goods Inventory on December 31 consists of 650 youth bars at $17 and 440 adult bats at $14 each Desired ending Finished Goods Inventory is 100 youth bars and 550 adult baba FIFO inventory costing method is used. per d. Direct materials cost is 3,20 X materials cost is 57 per youth bat and 9 per adult bat. Desired ending Raw Materials Inventory is $12.000 (indirect materials are cant and not considered for budgeting purposes). per c. Desired endir bat requires 0.5 hours of direct labor; direct labor costs average $15 per hour. f. Each bat requires 0.5 hours of dire g. Variable manufacturing overhead is $0.50 per bat. Fixed manufacturing overhead includes $600 per quarter in depreciation and $13,260 per quarter for other costs, such as insurance and property taxes. Fixed selling and administrative expenses include $14,000 per quarter for salaries: $3,000 per quarter for rent; $2,000 per quarter for insurance; and $300 per quarter for depreciation. Variable selling and administrative expenses include supplies at 3% of sales. Requirements 1. Prepare Huber's sales budget for the first quarter of 2017. 2. Prepare Huber's production budget for the first quarter of 2017. 403. Prepare Huber's direct materials budget, direct labor budget, and manufacturing over- head budget for the first quarter of 2017. Round the predetermined overhead alloca- tion rate to two decimal places. The overhead allocation base is direct labor hours. 4. Prepare Huber's cost of goods sold budget for the first quarter of 2017. 5. Prepare Huber's selling and administrative expense budget for the first quarter of 2017