Prepare an Operations Budget based on the information provided for ABC Bikes, Inc (ABC) for January February and March. The Operations Budget includes the sales budget, the production budget, the direct materials budget, the direct labor budget, the manufacturing overhead budget, the operating expense budget and the projected income statement (for January only). The manufacturing overhead budget and operating expense budgets are given. Sales Budget Expected sales for January and February are 1,000 units each and expected sales for March are 1.500 units. The sales price per unit is 570 for January and February and the sale price per unit for March is $75. Production Budget ABC requires a target ending inventory of 30% of the next month's sales January's beginning inventory is 0. April's expected sales are 2,500 units Direct Materials Budget ABC uses 32 pounds of material for each bike it manufactures and each pound of material costs $1.25. ABC's goal is to have 20% of the next month's material needs as desired ending materials inventory. April's produced units are 2,800. January's beginning inventory is Direct Labor Budget ABC needs 75 hours of direct labor for each unit produced, and the labor rate is $20 per hour MOH Budget January February March Variable Costs: Indirect Material 975.00 863.00 1.350.00 Indirect Labor 1.219.00 1,078.00 1.683.00 Maintenance 244.00 216.00 338.00 Uhilates 473.00 431.00 615.00 Total Variable Me Costs 2,926.00 2,588.00 4,051.00 Fixed Conte Supervisory Salaries 15,000.00 15,000.00 15,000.00 Maintenance Salaries 4,000.00 4,000.00 4,000.00 Insurance 7,000.00 7,000.00 7,000.00 Depreciation 3.000.00 3.000.00 3.000.00 Total Fixed Mez Costs 29,000.00 29,000.00 29,000.00 Total Manufacturing Overhead 31,925.00 31,588.00 33,050.00 January 2,000 500 2,500 February 2,000 500 2,500 March 3,000 250 2,750 Operating Expenses Budget Variable Expenses: Sales Commissions Transportation Total Variable Expenses Fixed Expenses Sales Salaries Administrative Salaries Marketing Expenses Insurance Expenses Depreciation Expenses Total Fixed Expenses Total Operating Expenses 5,000 5.000 5,000 5.000 5,000 1,000 2.000 18,000 5,000 5,000 5,000 5,000 1,000 2.000 18,000 1,000 2.000 18,000 20,500 20,300 21,750 Prepare an Operations Budget based on the information provided for ABC Bikes, Tee (ABC) for January, February and March. The Operations Budget includes the sales budget, the production budget, the direct materials budget, the direct laber budget, the manufacturing overhead budget the operating expense budget and the projected income statement (for January only). The manufacturing overhead budget and operating expense budgets are given. Sales Budget Expected sales for January and February ze 1,000 units each and expected sales for Marche 1,500 anits. The sales price per unit at $70 for January and February and the sales price per unit for March in 575. Production Budget ABC requires a target ending inventory of 30% of the next messie Jamary's beginning inventory is 0. April's expected sales are 2.300 units Direct Materials Budget ABC uses 3.2 pounds of material for each bike it manufactures and each pound of material cost $1.25. ABC's goal is to have 2016 the next month's material needs as desired ending materials inventory Ageils produced units are 2,300. January's beginning inventory is 0 Direct Labor Budget ABC needs 75 hours of direct labor for each unit produced and de laborate is $20 per hour MOH Budget February March Variable Costs: Indirect Material 975.00 563.00 1,350.00 Indirect Labor 1.219.00 1,078.00 1.683.00 Maintenance 24400 216.00 338.00 458.00 431.00 675.00 Total Variable Mia Costs 2,926.00 2.588.00 4,051.00 Fixed Conte Supervisory Salaries 15,000.00 15.000.00 15,000.00 Maustenance Salaries 4,000.00 2000.00 4,000.00 Insurance 7,000.00 7.000.00 7.000.00 Depreciation 3.000.00 3.000.00 Total Fixed M Couts 29,000.00 29,000.00 29,000.00 Total Manufacturing Overhead 31.925.00 31,588.00 33,050.00 Us January 2,000 500 2,500 February 2,000 500 2,500 March 3,000 250 2,750 Operating Expenses Budget Variable Expenses: Sales Commissions Transportation Total Variable Expenses Fixed Expenses: Sales Salaries Administrative Salaries Marketing Expenses Insurance Expenses Depreciation Expenses Total Fixed Expenses Total Operating Expenses 5,000 5,000 5,000 1,000 2.000 18,000 5,000 5,000 5,000 1,000 2.000 18,000 5,000 5,000 5,000 1,000 2.000 18,000 20,500 20,500 21,750