Selling and Administrative Budget Quarter 3 Year Planned sales in units Variable selling and admin exp per unit 3 Total variable expense 4 Fixed selling and admin expense 5 Total selling and admin expenses 17 Note depreciation in fixed selling and admin expense d. Each stemware unit uses one and a half hours of direct labor and two units of direct materials. Laborers are paid $24.00 per hour, and one unit of direct materials costs $12. e. There are 10,400 units of direct materials in beginning inventory as of January 1, 2019. At the end of each quarter, Quaint plans to have 10 percent of the direct materials needed for next quarter's unit sales. The ending unit of direct materials on hand at the end of the year was 14,200. f. Quaint buys direct materials on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid on the 15th and 30th of each month. g. Fixed overhead totals $576,400 for each of the first three quarters. Of this total, $175,000 represents depreciation. During the fourth quarter, the depreciation and total fixed overhead increases by $18,750. All fixed expenses other than depreciation are paid for in cash in the quarter incurred. The fixed overhead rate is computed by dividing the year's total fixed overhead by the year's expected actual units produced. h. Variable overhead is budgeted at $4.50 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred. i. Fixed selling and administrative expenses total $230,000 per quarter, including $50,000 depreciation. j. Variable selling and administrative expenses are budgeted at $4 per unit sold. All selling and administrative expenses are paid for in the quarter incurred. k. The balance sheet as of December 31, 2018, is as follows: ASSETS LIABILITIES and STOCKHOLDERS'EQUITY Accounts Payable $ 680,000 Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Plant and equipment, net Total Assets $ 52,000 1.275,000 124,800 656,500 9,360,000 SI 468,300 Capital Stock Retained Earnings Total Liab. & Equity 9.750,000 1.038,300 S11468,300