PA8-1 Preparing Operating Budgets [LO 8-3a, b, c, d, e, f, g lguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending raw materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow. 275 250 300 400 375 425 March May Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be 57,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at 5850 per month plus 50.80 per unit sold. Compute the following for Iguana, Inc., for the second quarter (April, May, and June). May June 1. Budgeted Sales Revenue 2. Budgeted Production in Units 3. Budgeted Cost of Raw Material Purchases 4. Budgeted Direct Labor Cost 6. Budgeted Cost of Goods Sold. 7. Total Budgeted Selling and Adm. Expenses 0.00 0.00 0.00