Prepare 2013 annual budget using the budget assumptions Prepare 2013 monthly budget based on monthly sales information, including production, materials purchases and direct labor budget as well as monthly income statement. Eagle's Nest, Inc. Information for Monthly Budget 2013 Unit Sales 600 700 900 1000 1000 1200 January February March April May June July August September October November December 1100 1000 900 800 500 800 Total for Year 10500 Required: 1. Prepare the monthly production budget assuming that at the end of each month the Company wants to have 10% of the following month's sales in inventory and that there was no inventory to begin 2013. Sales for January 2014 should be assumed to be the same as January 2013 2. Prepare the monthly material purchases budget. 3. Prepare the monthly direct labor budget 4. Prepare the monthly income statement budget. Assume that payroll tax and benefit costs occur at the same ratio to direct labor throughout the year 5. Assume all other variable overhead costs occur in relation to the sales volume 6. Assume all fixed overhead costs and selling, general and administrative costs occur evenly throughout the year. Eagle's Nest, Inc. Budget Assumptions for 2013 Assume that the new product material is used and the resulting changes in cost and selling price take place. Sales will be 10,500 units Direct labor cost will go to $ 15.10 per hour Other labor related costs will remain at the same percentages as in the 2012 budget. Depreciation will increase by $ 10,000 from 2012 Utilities will be $ 25,000 The supervisor will receive a 5% raise, this will also affect the other costs related to the supervisor's salary. Selling, general and administrative salaries will increase by 3% and so will the other personnel related costs. Since there is are no long term liabilities at the end of 2012 other than leases assume there is no interest expense for 2013. Advertising costs will increase by $5,000. All other S. G & A costs will remain at the same amounts or same percentages as in the 2012 budget. The tax rate should be assumed to be 35%