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 10 pounds 0 8 pounds 4 pounds 2 pounds 2 hours $ 160 12,000 370 300 Direct Materials Information 1 pound 3 hours $ 190 12,000 190 200 RM1 $ 5 3,400 3,500 RM2 $ 1.50 2,000 1,000 RM3 $ 0.50 700 2,000 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. 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 $ 15,000 4,500 40,000 90,000 300,000 21,000 10,070 71,340 43,430 10,000 Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office Total Selling and Administrative Expense Information $ 61,000 170,000 65,000 4,700 The effective income tax rate for the company is 40%. 61,000 250,000 4,500 6,200 $ 622,400 $ 605,340 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Direct materials purchases budget (units and dollars) for 2022. (Round "Cost per pound" to 2 decimal places.) SPRING MANUFACTURING COMPANY Direct Materials Purchases Budget (units and dollars) Raw material (RM) 1: Budgeted production Pounds per unit RM 1 needed for production Add: Desired ending inventory (lbs.) Total RM 1 needed (lbs.) Less: Beginning inventory (lbs.) Required purchases of RM 1 (lbs.) Cost per pound Budgeted purchases, RM 1 For the Year 2022 C12 D57 Total 11,930 12,010 10 8 119,300 96,080 215,380 215,380 215,380 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Direct labor budget for 2022. Budgeted production Direct labor hours per unit SPRING MANUFACTURING COMPANY Total direct labor hours needed Hourly wage rate Budgeted direct labor costs Direct Labor Budget For the Year 2022 C12 D57 Total 0 0 0 $ 0 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Factory overhead budget for 2022. SPRING MANUFACTURING COMPANY Variable factory overhead: Heat, light, and power Indirect labor Indirect materials Maintenance costs Factory Overhead Budget For the Year 2022 Miscellaneous supplies and tools Payroll taxes and fringe benefits Fixed factory overhead: Heat, light, and power Supervision Maintenance costs Total cash fixed factory overhead $ 0 Total budgeted factory overhead 0 $ 0 0 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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: Advertising Depreciation-warehouse Travel and entertainment Sales salaries Administrative expenses: Depreciation-office Office salaries Executive salaries $ 0 Supplies $ 0 Total selling and administrative expenses $ 0 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2022. (Round your intermediate calculations to 2 decimal places.) SPRING MANUFACTURING COMPANY Sales Cost of goods sold Gross profit Selling and administrative expenses Pre-tax operating income Income taxes After-tax operating income Budget Income Statement For the Year 2022 C12 D57 Total $ 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Cost of goods sold and ending finished goods inventory budgets for 2022. (Round your intermediate calculatio to 2 decimal places.) Sales volume SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2022 C12 Cost per unit Cost of goods sold Ending finished goods inventory Cost per unit Budgeted ending inventories D57 Total 24,000 $ 0 $ 0 $ 0 EA 0 EA 0 EA $ 0