The company has decided they needed to create a full set of budget schedules including financial statementsfor the first year of operations based on an assumption of constant demand of 18,000 quarterly and 72,000 for the first year (appendices B-1 through B-11). A second set of budget schedules and financial statements based on expected unit sales of 15,000 in quarter one, 25,000 in quarter two, 20,000 in quarter three, and finally 12,000 in quarter four for a total of 72,000 for the year based on a seasonal demand pattern (appendices C-1 through C-11). We expect the same quarterly sales patterns in year two meaning 18,000 units per quarter under constant demand and 15,000 units in quarter one under seasonal demand. Sales in Units

	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Annual Total
Constant Demand	18,000	18,000	18,000	18,000	72,000
Seasonal Demand	15,000	25,000	20,000	12,000	72,000

Budget Seasonal C-4 Labor Budget Constant B-5 Labor Budget Seasonal C-5 Mfg. Overhead Constant B-6 Mfg. Overhead Seasonal C-6 Appendix B-6 Water Play, Inc. Manufacturing Overhead Budget--Part 2 January 1, 20XX Annual Year 2 Q2 Q3 Q4 Total Q1 Direct Labor Hours for Units Produced 1,620,000 1,620,000 1,620,000 1,620,000 6,480,000 VO/H Rate per DLH $ 53.24 $ 53.24 $ 53.24 $ 53.24 53.24 Total Variable Overhead 86,250,000 86,250,000 86,250,000 86,250,000 345,000,000 Total Fixed Overhead 55,350,000 55,350,000 55,350,000 55,350,000 221,400,000 Total Overhead 141,600,000 141,600,000 141,600,000 141,600,000 566,400,000 Less: Depreciation 5,350,000 5,350,000 5,350,000 5,350,000 21,400,000 Cash Mfg. O/H costs 136,250,000 136,250,000 136,250,000 136,250,000 545,000,000