To Feathered Friends, Inc., a producer of bird feeders is preparing its budget for Dec The budget director has gathered the following data from various managers for use developing the budgeted income statement for December 2019: a) The Sales Manager estimated sales of 31,000 units in November 2019; 32,500 units in December 2019; and 36,000 units in January 2020. They are expected to be sold for 50 per unit. The Production Manager anticipates having 3.250 bird feeders on hand at December 1. These bird feeders are expected to have cost $22 per unit to produce. His production plan for December is to produce enough to have a desired inventory equal to 10% of the following month's budgeted sales. The bird feeders are made with wood. Each bird feeder requires 0.80 feet of wood. Each foot of wood is expected to cost $6.00. d) The Purchasing Manager expected to have 500 feet of wood on hand on December 1 and would like to have 600 feet on hand on December 31. The Production Manager notified the Human Resource Manager that each bird feeder requires 0.4 direct labor hours to produce. The Human Resource Manager indicates that the average hourly pay rate is $15 per hour. The Production Manager estimates the variable overhead costs are $7.00 per direct labor hour. Fixed overhead costs consist of $60,000 of depreciation expense and $200,000 of other overhead items (salaries, rent, utilities, insurance, etc.). Based on the annual budget, the predetermined overhead rate (for total overhead) is $27 per direct labor hour Selling and administrative expenses, including $50,000 of depreciation expense are expected to be $500,000 for December. The Sales Manager estimates that 30% of total sales are cash sales with the remainder on account. The Accounting Manager estimates that 20% of credit sales are collected in the month of sale with the remaining 80% collected in the month following sale. k) Material purchases, direct labor, factory overhead and selling and administrative expenses are paid for in the month incurred The Accounting Manager expects that the cash balance on December 1 will be $400,000