Spring Manufacturing Company makes two components identified as C$12$ and D$57.$ Selected budgetary data for $2022$ follow:

Finished Components

C$12$ D$57$

Requirements for each finished component:

RM $110$ pounds $8$ pounds

RM $204$ pounds

RM $32$ pounds $1$ pound

Direct labor $2$ hours $3$ hours

Product information:

Sales price $ $190$ $ $210$

Sales $($units$)12,00012,000$

Estimated beginning inventory $($units$)420110$

Desired ending inventory $($units$)300200$

Direct Materials Information

RM$1$ RM$2$ RM$3$

Cost per pound $ $6$ $ $4\mathrm{.}50$ $ $0\mathrm{.}50$

Estimated beginning inventory in pounds $3,1001,100500$

Desired ending inventory in pounds $3,6005001,000$

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 Information

Indirect materials$$variable $ $13,000$

Miscellaneous supplies and tools$$variable $4,500$

Indirect labor$$variable $37,000$

Supervision$$fixed $170,000$

Payroll taxes and fringe benefits$$variable $250,000$

Maintenance costs$$fixed $24,000$

Maintenance costs$$variable $10,060$

Depreciation$$fixed $71,350$

Heat, light, and power$$fixed $43,460$

Heat, light, and power$$variable $12,000$

Total $ $635,370$

Selling and Administrative Expense Information

Advertising $ $55,000$

Sales salaries $210,000$

Travel and entertainment $60,000$

Depreciation$$warehouse $4,500$

Office salaries $63,000$

Executive salaries $270,000$

Supplies $4,300$

Depreciation$$office $6,300$

Total $ $673,100$

The effective income tax rate for the company is $30\%.$

Required:

$1.$ Prepare the Sales budget for $2022.$

$2.$ Prepare the Production budget for $2022.$

$3.$ Prepare the Direct materials purchases budget $($units and dollars$)$ for $2022.$

$4.$ Prepare the Direct labor budget for $2022.$

$5.$ Prepare the Factory overhead budget for $2022.$

$6.$ Prepare the Cost of goods sold and ending finished goods inventory budgets for $2022.$

$7.$ Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses and Administrative Expenses for $2022.$

$8.$ Prepare the Budgeted income statement, the last item of which is labeled After$-$tax Operating Income for $2022.$