The H&BClothing Company manufactures luxury brand silk

jackets. Currently the company makes classic style jackets in

an innovative one$-$size$-$fits$-$all design. The production

process involves drawing, cutting, and assembling the

pattern pieces. Direct materials include two types of fabric$-$

silk, and viscose for lining. Other materials, such as shoulder

pads, stitching threads, buttons, labels, and packaging, are

treated as indirect materials. H&BClothing is preparing budgets for the third quarter

ending September $30,2023.$ For each of the requirements $(1-8)$ below, prepare monthly

budgets for July, August, and September, along with a total budget for the quarter.

The previous year's sales $(2022)$ for the corresponding period were:

The company expects the above volume of jacket sales to increase by $15\%$ for the

period July $2023-$ November $2023.$ The budgeted selling price for $2023$ is $$735\mathrm{.}00$

per jacket. The company expects $10\%$ of its sales to be cash $($COD$)$ sales. The

remaining $90\%$ of sales will be made on credit. Prepare a Sales Budget for

H&BClothing.H&BClothing budgets indirect materials $($e$.$g$.,$ shoulder pads, stitching threads,

buttons, labels, and packaging$)$ at $$35\mathrm{.}50$ per jacket. H&BClothing treats indirect

labor and utilities as mixed costs. The variable components are $$20\mathrm{.}00$ per jacket for

indirect labor and $$5\mathrm{.}50$ per jacket for utilities. The following fixed costs per month

are budgeted for indirect labor, $$25,000,$ utilities, $$2,200,$ and other, $$22,000.$

Prepare a Manufacturing Overhead budget.

Variable selling and administrative expenses are $$45\mathrm{.}50$ per jacket sold. Fixed selling

and administrative expenses are $$35,000$ per month. These costs are not itemized, i$.$e$.,$

the budget has only two line items $-$ variable operating expenses and fixed operating

expenses. Prepare an Operating Expenses budget.