The budget director for Bird House Unlimited, Inc., has gathered the following data for use in developing the budgeted income statement for January 2 Estimated sales for January Bird House 34,000 units at $42 per unit Bird Feeder 25,000 units at $70 per unit Direct materials Estimated inventories at January 1(beginning) Wood 2600 feet Plastic 3200 pounds Estimated inventories at January 31st(ending) Wood 3500 feet Plastic 2800 pounds Direct materials used in production: In the manufacture of a Bird House: Wood Plastic 0.80 feet per unit of product 0.50 pounds per unit of product 1.20 feet per unit of product 0.75 pounds per unit of product In the manufacture of a Bird Feeder: Wood Plastic Estimated cost of direct materials Wood Plastic S6.50 per feet $0.90 per pound Work in process-given in total of the 2 products Estimated Inventories at January 1(beginning) Estimated Inventories at January 31st(ending) $27,000 $32,400 Finished Goods Estimated inventories at January 1(beginning) Bird House Bird Feeder 4900 units 2,500 units at at $25 per unit $35 per unit Estimated inventories at January 31st(ending) Bird House Bird Feeder 5300 units 2,100 units at at $24 per unit $36 per unit Direct Labor Requirements: Bird House Fabrication Department Assembly Department 0.25 hour 0.3 hour at at $14 per hour $10 per hour Bird Feeder at Fabrication Department Assembly Department 0.45 hour 0.35 hour $14 per hour $10 per hour Estimated Manufacturing Overhead Costs for January Indirect Factory Wages Depreciation of Plant and Equipment Power and Light Insurance and property tax $550,000 165,000 42,000 15,400 Estimated operating expenses for January Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous Administrative expense S600,000 148,600 214,800 4,900 5,200 1,700 39,200 3,500 5,000 Estimated other income and expense for January Interest Revenue Interest Expense $14,000 11,000 Estimated tax rate 32% 6. Prepare a cost of goods sold budget for January 7. Prepare a selling and administrative budget for January, set up based on categorization of expenses into selling and administrative costs. 8. Prepare a budgeted income statement for January 9. What if the company decides to start a new advertising campaign that will increase the total advertising expense to a total of $180,000 and the estimated sales of bird house would increase to 36,000 units and Bird Feeders would increase to 29,000 units Make these changes on the Part 2 worksheet and if you have linked your data correctly to these budgets the budgets should update immediately. What budgets changed? What would be the new budgeted income? Would you recommend this advertising campaign? Why