P24-2C Bacon Inc. is preparing its annual budgets for the year ending December 31 , 2017. Accounting assistants furnish the following data. An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $850,000 for product LN 35 and $390,000 for product LN 40, and administrative expenses of $520,000 for product LN 35 and $180,000 for product LN 40 . Income taxes are expected to be 30%. Instructions Prepare the following budgets for the year. Show data for each product. Ouarterly budgets should not be prepared. (a) Sales (d) Direct labor (b) Production (e) Income statement (Note: Income taxes are (c) Direct materials not allocated to the products.)