Spring Manufacturing Company makes two components identified as C$12$ and D$57.$ Selected budgetary data for $2022$ follow: Finished ComponentsC$12$D$57$Requirements for each finished component: RM $110$pounds$8$poundsRM $204$poundsRM $32$pounds$1$poundDirect labor$2$hours$3$hoursProduct information: Sales price$ $170$ $ $220$ Sales $($units$)12,0009,000$ Estimated beginning inventory $($units$)430180$ Desired ending inventory $($units$)300200$ Direct Materials InformationRM$1$RM$2$RM$3$Cost per pound$ $2$$ $1\mathrm{.}50$$ $0\mathrm{.}50$Estimated beginning inventory in pounds$3,0001,1001,300$Desired ending inventory in pounds$4,1001,3001,300$ The firm expects the average wage rate to be $$25$ per hour in $2022.$ Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work$-$in$-$Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. Factory Overhead InformationIndirect materialsvariable$ $12,000$Miscellaneous supplies and toolsvariable$4,600$Indirect laborvariable$36,000$Supervisionfixed$100,000$Payroll taxes and fringe benefitsvariable$270,000$Maintenance costsfixed$19,000$Maintenance costsvariable$10,120$Depreciationfixed$71,350$Heat, light, and powerfixed$43,470$Heat, light, and powervariable$14,000$Total$ $580,540$ Selling and Administrative Expense InformationAdvertising$ $62,000$Sales salaries$250,000$Travel and entertainment$56,000$Depreciationwarehouse$4,800$Office salaries$61,000$Executive salaries$220,000$Supplies$3,700$Depreciationoffice$6,200$Total$ $663,700$ The effective income tax rate for the company is $50\%.$Prepare the budgeted income statement, the last item of which is labeled after$-$tax operating income for $2022.$

Spring Manufacturing company

Budget income statement

For the year $2022$

C$12$ D$57$ Total

Sales

Cost of goods sold

Gross profit

Selling and administrative expenses

Pre$-$tax operating income

Income taxes

After$-$tax operating income