Durham Inc. is preparing its annual budgets for the year ending December 31, 2010. Accounting assistants furnish the following data.

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $750,000 for product LN 35 and $590,000 for product LN 40, and administrative expenses of $420,000 for product LN 35 and $380,000 for product LN 40. Income taxes are expected to be 30%.InstructionsPrepare the following budgets for the year. Show data for each product. You do not need to prepare quarterly budgets.(a) Sales (b) Production(c) Direct materials not allocated to the products.)(d) Direct labor(e) Income statement

Product Product LN 35 LN 40 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: 400,000 $25 240,000 $35 25,000 15,000 30,000 20,000 2 50,000 20,000 40,000 $2 10,000 $3 0.5 0.75 $12 $12 $11 $20 Total unit cost