Please take your time! Ive seen this problem worked incorrectly several times and it is very difficult for me. I have worked it 4 times and still no correct answer.

Case Question 5-38 Klandon Company manufactures decorative rocks for aquariums. Kim Klandon is preparing the budget for the quarter ended June 30. She has gathered the following information. 1. Klandon's sales manager reported that the company sold 12,000 bags of rocks in March. He has developed the following sales forecast. The expected sales price is $10 per bag. Apri 20,000 bags May 50,000 bags June 30,000 bags July 25,000 bags August 15,000 bags sales personnel receive a 5% commission on every bag o increase resulting from the budgeted equipment purchase in June (see part 7). 2 ocks sold. The following monthly ed selling and administrative expenses are planned or the quarter. However, these amounts do not include the depreciation Monthly Fixed Selling and Administrative Costs Variablc Cost/Unit Depreciation Salaries of sales personnel Advertising Management salaries Miscellaneous Bad debts Total costs $10,000 $.50 25,000 1,000 10,000 500 50 $46,500 $1.00 3. After experiencing difficulty in supplying customers in a timely fashion due to inventory shortages, the company established a policy requiring the ending Finished Goods Inventory to equal 20% of the following month's budgeted sales, in units. On March 31, 4,000 bags were on hand Five pounds of raw materials are required to fil each bag of finished rocks. The company wants to have raw materials on hand at the end of each month equal to 10% of the following month's production needs. on March 31, 13,000 pounds of materials were on hand. 4. S. The raw materials used in production cost $0.40 per pound. Half of the month's purchases is paid for in the month of purchase; the other half, in the following month. No discount is available. 6. The standard labor allowed for one bag of rocks is 15 minutes. The current direct labor rate is $10 per hour. 7. On June 1, the company plans to spend $48,000 to upgrade its office equipment that is fully depreciated. The new equipment is expected to have a five-year life, with no residual value. 8. The budgeted monthly variable and fixed overhead amounts are as follows. Variable overhead is based on the number of units produced. The fixed overhead budget is based on an annual production of 400,000 bags