Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2022 follow: Requirements for each finished component: RM 1 RM 2 RM 3 Direct labor Product information: Sales price Sales (units) Estimated beginning inventory (units) Desired ending inventory (units) Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds Finished Components C12 D57 8 pounds 0 4 pounds 10 pounds 2 pounds $ 150 12,000 400 hours 1 pound 3 hours $ 220 9,000 150 300 Direct Materials Information RM1 $ 2.00 3,000 4,000 RM2 $ 2.50 1,500 1,000 RM3 $ 0.50 1,000 1,500 200 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. 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 Total Factory Overhead Information $ 10,000 5,000 40,000 120,000 250,000 20,000 10,080 71,330 43,420 11,000 $ 580,830 Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Selling and Administrative Expense Information $ 60,000 200,000 60,000 5,000 60,000 250,000 4,000 Depreciation-office 6,000 Total $ 645,000 The effective income tax rate for the company is 40%. Spring Manufacturing Company has had a continuous improvement (kaizen) program for the last two years. According to the kaizen program, the firm is expected to manufacture C12 and D57 with the following specifications: Cost Element Raw material 1 Raw material 2 Raw material 3 Direct labor C12 D57 9 pounds 0 1.8 pounds 1.5 hours 7 pounds 3.6 pounds 0.8 pound 2 hours The company specifies that the variable factory overhead is to decrease by 10% while the fixed factory overhead is to decrease by 5%, except for depreciation expenses. The company does not expect the price of the raw materials to change. However, the hourly wage rate is likely to be $30. Required: Assume the firm can attain the expected operating level as prescribed by the kaizen program: 1-a. Prepare the Sales budget for 2022. 1-b. Prepare the Production budget for 2022. 1-c. Prepare the Direct materials purchases budget (units and dollars) for 2022. 1-d. Prepare the Direct labor budget for 2022. 1-e. Prepare the Factory overhead budget for 2022. 1-f. Prepare the Cost of goods sold and ending finished goods inventory budgets for 2022. 1-g. Prepare the Selling and administrative expense budget for 2022. 1-h. Prepare the income statement, the last item of which is labeled After-tax Operating Income for 2022. SPRING MANUFACTURING COMPANY Factory Overhead Budget For the Year 2022 Original variable OH costs: Indirect materials Miscellaneous supplies and tools Indirect labor Payroll taxes and fringe benefits Maintenance costs Heat, light, and power Total variable factory overhead Reduction rate for variable OH costs Budgeted variable OH $ 10,000 5,000 40,000 250,000 10,080 11,000 $ 326,080 10 % $ 293,472 Original fixed OH: Supervision Maintenance costs Depreciation Heat, light, and power Total cash fixed factory overhead Reduction Rate for Cash Fixed OH Costs Budgeted Cash Fixed OH $ 120,000 20,000 71,330 43,420 $ 254,750 242012.5 Need help with parts 1E-1H. Total budgeted fixed OH Total budgeted factory OH $ 242,013 $ 535,485 Prepare the Cost of goods sold and ending finished goods inventory budgets for 2022. (Do not round intermediate calculations. Round "Cost per unit" to 5 decimal places.) Sales volume SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS Cost of goods sold Ending finished goods inventory Budgeted ending inventories For the Year 2022 C12 D57 Total 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2022. SPRING MANUFACTURING COMPANY Selling and Administrative Expense Budget For the Year 2022 Selling expenses: Administrative expenses: $ 0 Total selling and administrative expenses $ $ 0 0 Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2022. (Round "Cost per unit" to 5 decimal places. Do not round any other intermediate calculations. Round your answers to the nearest whole dollar.) SPRING MANUFACTURING COMPANY Budget Income Statement For the Year 2022 C12 D57 Total $ 0 0 $ 0 $ 0 $ 0 $ 0 $ 0