Prepare the Direct Labor Budget assuming:

1.To produce a unit is required 2.5 hours of direct labor.

2.The hourly wage rate is expected to be $7.50.

Prepare the Manufacturing Overhead Budget assuming:

1.The supervisor salaries are $42,000 per quarter.

2.The indirect material is expected to be $1.15 per direct labor hour.

3.Depreciation is expected to be $6,500 per quarter.

4.Other variable cost is expected to be $1.75 per direct labor hour.

5.Property taxes and insurance are expected to be $11,500 per quarter.

6.Indirect labor is expected to be $1.60 per direct labor hour.

7.Maintenance is expected to be $.25 per direct labor hour plus $3,500 per quarter.

Prepare the Selling and Administrative Budget assuming:

1.Advertising expenses are expected to be of $2,500 per quarter.

2.Freight-out is expected to be $1.10 per unit sold.

3.Sale Commission is expected to be $2.45 per unit sold.

4.Office salaries are expected to be $3,200 per quarter.

5.Depreciation is expected to be $1,750 per quarter.

6.Other variable costs are expected to be $.25 per unit sold.

7.Sales salaries are expected to be $18,000 per quarter.

8.Property taxes and insurance are expected to be $750 per quarter.

9.Miscellaneous expense is expected to be $.15 per direct labor hour plus $350

per quarter.