Preparation of Individual Budgets During the first calendar quarter of 2019, Williams Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 8,000 units in the urban region at a unit price of $65 and 6,000 units in the rural region at $55 each. Because the sales manager expects the product to catch on, she has asked for production sufficient to generate a 4,000-unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses: Manufacturing costs: Direct materials Fixed Variable (per unit) (total) A (2 lb. @ $2.50/lb.) $5.00 B (5 lb. @ $1.40/lb.) 7.00 Direct labor (2 hours per unit) 10.00 Manufacturing overhead Depreciation $22,500 Factory supplies 0.55 2,500 Supervisory salaries 16,250 Other 0.65 9,200 Operating expenses: Selling: Advertising 12,500 Sales salaries& commissions* 1.25 20,000 Other* 0.50 4,200 Administrative Office salaries Supplies Other 15,000 0.40 1,200 0.25 5,000 *Varies per unit sold, not per unit produced. 4. Direct labor costs $ 0 5. Manufacturing overhead costs Fixed Variable Total Depreciation 0 $ 0 $ 0 Factory supplies 0 0 0 Supervisory salaries 0 0 0 Other 0 0 0 Total manufacturing overhead $ 0 6. Selling and administrative expenses Fixed Variable Total Selling expenses: Advertising $ 0 $ 0 $ Sales salaries and commissions 0 0 Other 0 0 Total selling expenses $ oooo 0 0 0 0 Administrative expenses: Office salaries $ 0 $ 0 $ Supplies 0 0 Other 0 0 Total administrative expenses $ Total selling and administrative expenses $ ooooo 0 0 0 0 0 b. Using data generated in requirement (a), prepare a budgeted income statement for the calendar quarter. Assume an overall effective income tax rate of 35%. Round answers to the nearest whole number. Do not use negative signs with your answers. b. Using data generated in requirement (a), prepare a budgeted income statement for the calendar quarter. Assume an overall effective income tax rate of 35%. Round answers to the nearest whole number. Do not use negative signs with your answers. Williams Corporation Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Cost of Goods Sold: Beginning Inventory - Finished Goods Material: Beginning Inventory - Material $ Material Purchases Material Available Ending Inventory - Material Direct Material Direct Labor Manufacturing Overhead ooooooo 0 0 0 Total Manufacturing Cost Cost of Goods Available for Sale Ending Inventory - Finished Goods Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Income before Income Taxes Income Tax Expense Net Income 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0