Laurel Sound Systems manufactures three models of speakers for stereo systems: Model 150, Model 100, and Model 50. The speakers are marketed in two regions, South and Southwest. Production departments are Cutting, Assembling, and Finishing. Lumber, speakers, and a finishing compound are the only materials used in producing the speakers. The following estimates have been made for the coming year:
(a) Sales forecast by territory:

(b) Inventories:

Work in process: None at the beginning or end of the period.

(c) Materials requirements:

(d) Estimated materials cost:
Lumber, $.75 per board foot
Speakers, $15 per speaker
Finish, $2 per pint
(e) Estimated labor cost:

Estimated labor time requirements in hours:

(f) Factory overhead budgets, show the following unit overhead rates:

(g) Budgeted commercial expenses:
Marketing: $500,000.
Administration: $300,000.
(h) Income tax rate is 50%.
Required:
Prepare annual budget schedules. The schedules should be designed to provide essential data in a form that is easily understood and should include the following:
(1) Sales budget-by models and by sales regions
(2) Production budget-by models and by units
(3) Direct materials budget in units-by materials and by models
(4) Purchases budget-by materials and by cost
(5) Cost of materials required for production-by materials and by models
(6) Direct labor budget-by models and by departments
(7) Factory overhead budget (applied overhead)-by models and by departments
(8) Beginning and ending inventories-by materials and by models
(9) Budgeted cost of goods manufactured and sold statement
(10) Budgeted income statement

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South Southwest Sales Price (in units) 4,000 7,000 8,000 per Unit $175 120 90 (in units) Product Model 150... Model 100 Model 50.. 3,000 5,000 7,000 Units in Beginning Inventory Cost per Desired Unit in Units in Beginning Ending Inventory Inventory Materials: Lumber (board feet)40,000 Speakers Finish (pints 10,000 1,500 $ .75 30,000 8,000 2,000 15.00 2.00 Cost per Unit in Desired Units in Units in Beginning Beginning Ending Inventory Inventor Invento Finished goods (fifo) Model 150 Model 100 Model 50 200 300 400 $98.00 62.00 47.00 200 400 300 Finish Lumber (in board feet) 12 Speakers 5 3 2 (in pints) 2 Product Model 100.. Cutting $6.00 Assembling Finishing $5.00 $4.00 Model 150 100 50 Cutting 375 375 375 Assembling Finishing 2.0 1.5 1.5 375 250 250 Mode Cutting Assembling Finishing 150 100 50 $1.00 1.00 1.00 $2.00 1.50 1.50 $.75 50 .50