Projected Sales Budget 2021 Quarter 2 3 Year Expected Unit Sales 10.000 14,000 Unit Selling Price 78 Total Sales 780.000 78 1,092,000 14,000 78 1,092,000 16,000 54,000 78 1,248,000 4.212.000 Additional information for the Production Budget: 1 Beginning Finished Goods Inventory in units for Q1 2021 is 500 units 2 Each quarter's Finished Goods Inventory should contain 5% of the following quarter's Expected Unit Sales 3 Estimated Q1 2022 Expected Unit Sales are projected to be 10,000 Additional information for the Direct Materials Budget: 1 There are 3 pounds of direct materials per unit of finished goods. 2 18% of the next quarter's production materials are required to be in ending direct materials inventory. 3 28,000 pounds of material are estimated to be needed for Q1 2022 production 4 Beginning inventory for Q1 2021 was 3.960 pounds of direct materials 5 Total cost per pound of direct material is $4.00. Additional information for the Direct Labor Budget: 1 There are 1.75 hours of direct labor needed to produce one unit of finished goods 2 Direct labor is $18.25 per hour. Additional information for the Manufacturing Overhead Budget: 1 Variable Cost a. Indirect Materials ($1.40 hour) b. Indirect Labor ($1.20 hour) c. Usites ($0.40/hour) d. Maintenance ($0.60 hour) 2 Fixed Cost a. Supervisory Salaries $27,000 per quarter b. Depreciation $10,500 per quarter Property taxes and Insurance $9,295 per quarter d. Maintenance/Utes $11,450 per quarter Manufacturing Overhead is applied to production on the basis of direct labor hours. Seton Manufacturing Projected SG&A Expense Budget 2021 Quarter 1 2 3 4 Year Budgeted Unit Sales 10.000 14,000 14,000 16,000 54.000 Vanable Cost Sales Commissions ($3.30) 33,000 46.200 46.200 52.800 178.200 Freight-out ($1.00/unit) 10.000 14,000 14.000 16.000 54,000 Total variable cost 43,000 60.200 60.200 68.800 232.200 Fixed Cost Advertising 5.000 5.000 5,000 5,000 20,000 Sales Salaries 15,000 15.000 15,000 15,000 60.000 Office Salaries 7,500 7,500 7.500 7,500 30.000 Depreciation 1.346 1,346 1,346 1.346 5.384 Property Taxes and Insurance 1,500 1.500 1,500 1,500 6,000 Total fixed cost 30.346 30.346 30.346 30.346 121.384 Total SG&A 73.346 90.546 90.546 99,146 353.564 Additional information for the Income Statement: 1 Interest Expense of $5,000 is expected to be eamed in 2021. 2 Tax rates 30%