Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow 40 Finished Components Requirements for each finished RM 1 RM 2 RM 3 Direct labor 10 pounds 8 pounds 4 pounds I pound 3 hours 2 pounds 2 hours oints Product infornation: Sales price Sales (units) Estinated beginning inventory (units Desired ending inventory tunits S 160 12,000 400 300 S 250 12,000 200 200 Direct Materials Enformation RN2 RM3 Cost per pound Estinated beginning inventory in pounds Desired ending inventory in pounds $6 $4.50 0.50 500 3,500 1,200 4,100 400 2,000 The firm expects the average wage rate to be $25 per hour in 2019. 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 Miscellaneous supplies and tools-variable Indirect labor-variable Supervision-fixed Payroll taxes and fringe benefits-variable Maintenance costs-fixed Maintenance costs-variable Depreciation-fixed Heat, light, and power-fixed Heat, light, and power-variable $ 15,000 5,400 45,000 120,000 260,000 18,000 10, 050 71,340 43,400 11,000 $599,190 5 points Skipped Total Selling and Administrative Expense Information Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office 61,000 240,000 55,000 4,900 60,000 300,000 3,800 6,300 s 731,000 Total The effective income tax rate for the company is 50%. 40 Required 1. Prepare the Sales budget for 2019. 2. Prepare the Production budget for 2019. 3. Prepare the Direct materials purchases budget (units and dollars) for 2019. 4. Prepare the Direct labor budget for 2019. 5. Prepare the Factory overhead budget for 2019 6. Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019 7. Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2019. 8. Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019. points Required 1 Required 2 Required 3 Required 4 Required 5 Required 6Required 7 Required 8 Prepare the Sales budget for 2019. 5 points SPRING MANUFACTURING COMPANY Sales Budget For the Year 2019 C12 Skipped D57 Total Sales (in units) Selling price per unit Total sales revenue Required 1 Required 2> Required 1Required 2 Required 3 Required 4 Required 5 Required 6 Requ 40s Prepare the Production budget for 2019. SPRING MANUFACTURING COMPANY Production Budget For the Year 2019 oints Skipped C12 D57 Budgeted sales (in units) Total units needed 0 Budgeted production (in units) 0