Which of the following statements is incorrect regarding budget preparation for a manufacturer?

a) The production budget is prepared by subtracting the expected units in beginning inventory from the numbers of units needed to meet sales goals and safety stock requirements.

b) The direct materials budget is prepared by multiplying the expected wage rate by the expected quantity of direct materials to be purchased during the period

c) The sales budget is prepared by multiplying the budgeted unit sales by the budgeted unit sales price

d) The factory overhead budget is driven by expected unit production

e) The selling and administrative expense budget includes noncash expenses such as depreciation and bad debt