PR 22-3A Budgeted income statement and supporting budgets Obj. 4 4. Total direct labor The budget director of Birding Homes & Feeders Inc., with the assistance of the controller, treasurer, cost in Fabrication Dept., production manager, and sales manager, has gathered the following data for use in developing $293,850 the budgeted income statement for January: a. Estimated sales for January: Bird house . . .. 15,000 units at $25 per unit Bird feeder. . .. 40,000 units at $15 per unit b. Estimated inventories at January 1: Direct materials Finished products: Wood . . . .. ... GOO It. Bird house .. .. .. . 1,000 units at $15 per unit Plastic. . . ..... 1,000 lbs. Bird feeder. . .. ... 2,500 units at $8 per unit C. Desired inventories at January 31: Direct materials Finished products: Wood . . . . .. . . 500 ft. Bird house . . .. .. . 1,500 units at $15 per unit Plastic. .. . . . . . 1,250 lbs Bird feeder.. . . . . . 3,000 units at 58 per unit d. Direct materials used in production: In manufacture of bird house: In manufacture of bird feeder: Wood .. . 0.80 ft. per unit of product Wood . .. 0.20 ft. per unit of product Plastic. . ... 0.10 lb. per unit of product Plastic. . 1.00 lb. per unit of product e. Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood .. .. .. $2.50 per ft. Plastic... . .. ..... 50.80 per lb. f. Direct labor requirements: Bird house: Fabrication Department .. 0.40 hr. at $ 18 per hr. Assembly Department.. 0.20 hr. at $12 per hr. Bird feeder: Fabrication Department . 0.25 hr. at $ 18 per hr. Assembly Department. . 0.10 hr. at $12 per hr. Estimated factory overhead costs for January: Indirect factory wages $40,000 Power and light $10,000 Depreciation of plant and equipment 20,000 Insurance and property tax 5,000 h. Estimated operating expenses for January: Sales salaries expense $125,000 Advertising expense 80.000 Office salaries expense 10,000 Depreciation expense-office equipment 4,000 Travel expense-selling 25,000 Office supplies expense 2.500 Miscellaneous administrative expense 3,500