Waterways Corporation is preparing its budget for the coming year, 2022. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Sales Unit sales for November 2021 112,000 Unit sales for December 2021 103,000 Expected unit sales for January 2022 Expected unit sales for February 2022 114,000 113,000 Expected unit sales for March 2022 116,000 Expected unit sales for April 2022 124,000 Expected unit sales for May 2022 138,000 Unit selling price $12 Manufacturing Overhead Indirect materials 30 per labor hour Indirect labor 50 per labor hour Utilities 50 per labor hour Maintenance 30 per labor hour Salaries $43,000 per month Depreciation $16,600 per month Property taxes $2,700 per month Insurance $1,300 per month Maintenance $1,200 per month Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2021, totaled $185,400. Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2021 totaled 11,390 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2021, totaled $120,595. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. WATERWAYS CORPORATION Manufacturing Overhead Budget Selling and Administrative Variable selling and administrative cost per unit is $1.50. Advertising Insurance Salaries $ $14,000 a month $1,400 a month $72,000 a month $ $ $ $ $ $ $ $ Depreciation $2,600 a month Other fixed costs $3,000 a month $ $ First Quarter January February $ $ March $ $ $ $ $ Quarter $ $ $ $ $ $ $ $ $