Santiago's Salsa is in the process of preparing a production cost budget for May. Actual costs in April were:

Santiago's Salsa

Production Costs

April 201720,000ProductionJars of SalsaIngredient cost (variable)$12,000Labor cost (variable)8,000Rent (fixed)5,000Depreciation (fixed)6,000Other (fixed)1,000Total$32,000

Using this information, prepare a budget for May. Assume that production will increase to 22,000 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

Santiago's Salsa

Budgeted Production Costs

May 201722,000ProductionJars of SalsaIngredient cost$

Labor cost

Rent

Depreciation

Other

Total$