Serum Beverages bottles two soft drinks under licence to Harmer Ltd. at its Abbotsford plant. Bottling at this plant is highly repetitive, automated process. Empty bottles are removed from their carton, placed on a conveyor, and cleaned, rinsed, dried, filled, capped and heated (to reduce condensation). The only stock held is direct materials or else finished goods. There is no work in process. The two soft drinks bottled by Serum Beverages are lemonade and diet lemonade. The syrup for both soft drinks is purchase from Harmer Ltd. Syrup for the regular brand contains a higher sugar content than the syrup for the diet brand. Serum Beverages uses a lot size of 1,000 cases as the unit of analysis in its budget. (Each case contains 24 bottles). Direct materials are expressed in terms of lots, where one lot of direct materials is the input necessary to yield one lot (1,000 cases) of beverage. In 2022, the following purchase prices are forecasted for direct materials: Lemonade Diet Lemonade Syrup $1,300 per lot $1,200 per lot Containers (bottles, caps, etc.) $1,100 per lot $1,100 per lot Packaging $850 per lot $850 per lot The two soft drinks are bottled using the same equipment. The equipment is cleaned daily, but it is only rinsed when a switch is made during the day between diet lemonade and 3 lemonade. Diet lemonade is always bottled first each day to reduce the risk of sugar contamination. The only difference in the bottling process for the two drinks is syrup. Summary data used in developing budgets for 2010 are as follows: a Sales Lemonade, 1080 lots at $9,500 selling price per lot Diet lemonade, 540 lots at $8,700 selling price per lot b Opening (1 January 2022) stock of direct materials Syrup for lemonade, 80 lots at $1,200 purchase price per lot Syrup for diet lemonade, 70 lots at $1,100 purchase price per lot Containers, 200 lots at $1,000 purchase price per lot Packaging, 400 lots at $900 purchase price per lot c Opening (1 January 2022) stock of finished goods Lemonade, 100 lots at $5,400 per lot Diet lemonade, 50 lots at $5,300 per lot d Target closing (31 December 2022) stock of direct materials Syrup for lemonade, 30 lots. Syrup for diet lemonade, 20 lots. Containers, 100 lots. Packaging, 200 lots. e Target closing (31 December 2022) stock of finished goods Lemonade, 20 lots. Diet lemonade, 10 lots. f Each lot requires 20 direct manufacturing labour hours at the 2022 budgeted rate of $28 per hour. Indirect manufacturing labour costs are included in the manufacturing overhead budget. g Variable manufacturing overhead is forecast to be $610 per hour of bottling time; bottling time is the time the filling equipment is in operation. It takes 2 hours to bottle 4 one lot of lemonade and 2 hours to bottle one lot of diet lemonade. Fixed manufacturing overhead is forecast to be $1,200,000 for 2022. h Hours of budgeted bottling time is the sole allocation base for all fixed manufacturing overheads. I Administration costs are forecast to be 10% of the cost of goods manufactured for 2022. Marketing costs are forecast to be 12% of sales for 2022. Distributions costs are forecast to be 8% of sales for 2022. Required: Assume Serum Beverages uses the first in- first out (FIFO) method of costing all stock. On the basis of the preceding data, prepare the following budgets (in units and/or dollars as applicable) for 2022: 1. Revenue budget (3 marks) 2. Production budget (3 marks) 3. Direct material usage budget (15 marks) 4. Direct material purchase budget (10 marks) 5. Direct manufacturing labour budget (6 marks) 6. Manufacturing overhead cost budget (15 marks) 7. Closing finished goods stock budget (10 marks) 8. Cost of goods sold budget (3 marks) 9. Marketing cost budget (1 mark) 10. Distribution cost budget (1 mark) 11. Administration cost budget (7 marks) 12. Budgeted profit & loss. (6 marks)