33. Selling and Administrative Budget and Budgeted Income Statement. (The previous problem must be completed before working this problem.) Hershel's Chocolate produces chocolate bars. Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year follow.

Salaries $170,000 Rent $ 65,000 Advertising $120,000 Depreciation $ 75,000 Other $ 36,000 Required:

Use the information presented previously to create a selling and administrative budget. R Use the information from the previous problem and from requirement a of this problem to prepare a budgeted income statement. How will management use the information presented in the budgeted income statement?

Please provide the budget and a step by step solution.