The following information applies to the 2021 Financial Balance Sheet for LMN Manufacturing: LMN Manufacturing produces a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows:

\fLMN Manufacturing Manufacturing Overhead Budget For the Year Ended December 31, 2023 Quarter 1 2 3 4 Total Budgeted direct labor hours needed Variable manufacturing overhead per direct labor hour Variable manufacturing overhead per direct labor hour S S S S S Fixed manufacturing overhead Total manufacturing overhead S S . $ Less depreciation Cash disbursements for manufacturing overhead Total manufacturing overhead Budgeted direct labor hours Predetermined overhead rate for the year (Total Manuf OH / Total Budgeted DL Hours) #DIV/OI\fLMN Manufacturing Budgeted lnoome Statement For the Year Ended December 31, 2022 (Absorption coating heals] Sales Cost of goods sold Gross margin Selling and Administrative expenses Net operating income Interest expense Net income