Prepare a budgeted income statement through operating income by quarter and for the year using the contribution margin format--use the format provided on the template as a reference. Then add interest expense to your income statement to determine income before tax. Interest expense can be calculated from the information provided for the cash budget. (For purposes of this project, we will ignore income taxes.)

		QTR 1	QTR 2	QTR 3	QTR 4		YEAR
Sales revenue
LESS: Variable costs
Direct materials
Direct labor
Variable overhead
Variable selling
Total variable costs
Contribution margin
LESS: Fixed costs
Fixed overhead-depreciation
Fixed overhead-other
Fixed selling-depreciation
Fixed selling-other
Fixed admin-depreciation
Fixed admin-other
Total fixed costs
Operating income

29 30 DIRECT LABOR BUDGET 31 Production 32 Std hours per unit 33 Total labor hours needed 34 $9.00/DLH 35 Total cost of direct labor 36 37 OVERHEAD BUDGET: 38 Total labor hours needed 39 $6.00/DLH 40 Total variable overhead 41 Fixed overhead-depreciation 42 Fixed overhead-other 43 Total budgeted overhead 43480 622206732032436 205456 6 260880 373320 403920 194616 1232736 6 6 6 6 2347920 3359880 3635280 1751544 11094624 260880 373320 403920 194616 1232736 6 15652802239920 2423520 1167696 7396416 90000 90000 122500122500 425000 524000 524000 524000524000 2096000 2179280 28539203070020 1814196 9917416 6 6 6 6 45 SELLING& ADMIN BUDGET 46 Variable selling-commissions 47 Fixed selling 48 Fixed admin 49 Depreciation-selling 50 Depreciation-admin 51 Total budgeted selling & admin cost 3.50% 299880 449820 524790 224910 1499400 850000 850000 850000850000 3400000 980000 980000 980000 980000 3920000 75000 75000 75000 75000300000 120000 120000 120000120000 480000 2324880 2474820 2549790 2249910 9599400