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Prepare the quarterly production budget for Sheridan for its second year of opesations. Present budgeted amounts for each quarter and for the year overall. Prepare

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Prepare the quarterly production budget for Sheridan for its second year of opesations. Present budgeted amounts for each quarter and for the year overall. Prepare the quarterly sales budget for Sheridan for its second ycar of operations. Present budgeted amounts for each quarter and for the year overall. Prepare the quarterly pe oduction budget for Sher idan for its second vear of operations. Present budgeted amounts for each quarter and for the year overall. Prepore the quarterly sales budget for Sheridan for its second year of operations. Present budgeted amounts for each quarter and for the yeat overall. In Sheridan Corporation's fiest year of operations, iradequate budgeting led to signifcant cost overruns in multiple production areas. Direct materials needed to be express-delivered, and laborers needed to be paid overtime because reasonable budgets werent in place, nor were managers proper ly trained on how to use them. If adequate budgeting had been done, the compary might have achieved its objectives that year. As year one comes to a close, all managers are now committed to creating and using accurate budgets for next year so they can properiy plan for the resources to support production. The following information is in place to assist the management team in butgeting for year 2 . Additional information: 1. Budgeted selling price is 579 /unit. 2. Desired ending rG inventary 5258 of the folkwing quarter's sales volume 4. Beginning FG Imventory on Janaary 1 of Year 2 is expected to be just 720 units. 4. Each unit reouires a pounds of DM at an estimated cost of 54/ pound 5. Desired ending DM Imventory is 2006 of the followiru quarter s production needs. 6. Each unit requires 12DL hours at an estimuted cost of 514/ hour. 3. Beginning FG inventory on January 1 of Year 2 is expected to be just 720 units. 4. Fach unit requires 3 pounds of DM at an estimated cost of $4 /pound. 5. Desired ending DM inventory is 20% of the following quarter's production needs. 6. Eachunit requires 12 DL hours at an estimated cost of 514 hour. 7. Variable MOH is applied to units at a budgeted rate of $15 /unit produced. 8. Quarterly Fixed MOH costs are expected as follows: depreciation on plant assets of $12,000, supervisors' salaries of $21.400, and property taxes and insurance of $5.100. 9. Varisble $GSA expenses are budgeted at a rate of $3% unit sold. 10. Quarterly fuxed SGSA expenses are expocted as follows: sales salaries of $14,600, advertising of $2,600, and executive and administrative salaries of $39,700

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