Prepare the Sales Budget assuming:

1. Expected sales volume: 8,000 units for the first quarter, an increase of 20% is expected for the second quarter, a decrease of 10% for the third quarter, and an increase of 25% for the fourth quarter.
2. The sales price should be $75.00 for the first two quarters and $82.50 for the last two quarters.

Prepare the Production Budget assuming:

1. The company believes it can meet future sales needs with an ending inventory of 25% of the next quarter, for the first two quarters, and 35% of the next quarter, for the last two quarters.
2. The expected sales in units for the first quarter of 2022 is 11,000.

Prepare the Direct Material Budget assuming:

1. Ending inventory of raw material is expected to be 15% of total pounds needed for production of the next quarter for the first two quarters and 20% of the next quarter for the last two quarters.
2. The expected pounds needed for production in the first quarter of 2022 is 38,500.
3. Each product requires 3 pounds of raw material.
4. The expected cost per pound is $8.25.

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.

Prepare the Budgeted Income Statement with the information above and the following information:

1. Manufacturing overhead required per unit is 2.5
2. Interest Expense is $12,000.
3. Income tax rate is 15.5%