Decker Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Decker Manufacturing operations: (Click the icon to view the dala) (Click the icon to view additional data.) Read the reguirements Decker Manufacturing Cash Collections Budget: For the Quarter Ended March 31 Requirement 2 . Prepare a production budget (Hint Unit sales = Sales in dollars + Selling price per unit ) Data table Requirements 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total, 2. Prepare a production budget (Hint. Unit sales = Sales in dollars / Selling price per unit) 3. Prepare a direct materials budget 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) 5. Prepare a cash payments budget for direct labor. 6. Prepare a cash payments budget for manufacturing overhead costs. 7. Prepare a cash payments budget for operating expenses. 8. Prepare a combined cash budget. 9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.70 per unit for the year). 10. Prepare a budgeted income statement for the quarter ending March 31 . (Hint. Cost of goods sold = Budgeted cost of manufacturing one unit Number of units sold.) More info a.Actual sales in December were $71,000. Seling price per unit is projected to remain stable at $12 per unit throughout the budget period Sales for the first five months of the upcoming year are budgeted to be as follows. b. Siles are 35% cash and 65% credit All credit sales are collected in the month following the sale c. Decker Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's salos fin units) d.OF each montis direct material purchases. 20% are pald for in the month of purchase, while the remainder is paid for in the month following purchase. Three pounds of direct materlal is needed per unit at $2.00 per pound. Ending inventory of direct materials should be 20% of next month's production needs. e. Wost of the labor at the mandacturing faclity is indirect, but there if some direct tabor incurred. The direct labor hours per unit is 0.05. The direct labor rate per hour is 59 per hour. All direct labor is pald for in the month in which the work is performed. The direct labor total cost for each of the upcoming three monthe is as follows f. Monthly manufacturing overhead costs are $5,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1,10 per they are incurred. 9. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January. Decker Manufacturing wili purchase equipment for $5,000 (cash), While February's cash expenditure will be $12,200 and March's cash expenditure will be 516,600 h.Operating expenses are budgeted to be $1.25 per unit sold plus fixed operating expenses of $1,800 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures 1. Depreciation on the bultding and equipment for the general and administrative offices is budgeted to be $4700 for the ontire quarter, which includes depreclation on new acquisitions 1. Decker Manulacturing has a policy that the ending cash balance in each month must be at least $4,000 it has a line of credit with a local bank The company can borrow in increments of $1.000 at the beginning of each month up to a total outstanding loan batunce of $130,000. The interest rate on theso foans is 1% per month simple Intorest (not compounded). The coinpany woufd pary down on the line of credit balance in increments of $1,000ifithesexcessfundsattheendofthequater.Thecompanywould aho pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,000 cosh at the end of February in estimated taxes