Expected sales, in units, for the four quarters of 2022 and the first two quarters of 2023 are as follows: 2022 QI 2022 02 2022 03 2022 04 2023 QI 2023 02 26,000 41 ,ooo 34,000 50,000 30,000 44,000 2. 3. 4. 5. 6. 7. 8. The selling price for 2022 has been set at $25.00 per unit. All sales are on account. 75% of sales on account are collected in the quarter of sale and 25% of sales on account are collected in the following quarter. Assume that all the balance in Accounts Receivable at December 31 , 2021 will be collected in the first quarter of 2022. Assume no bad debts are incurred. Kakao has a policy of keeping ending finished goods inventory equal to 10% of next quarter's forecasted sales. Kakao has a policy of maintaining direct material ending inventory equal to 10% of direct materials needed for the next quarter's production requirements. All raw materials are purchased on account. 50% of the quarter's purchases are paid for in the quarter of purchase and the remaining in the following quarter. There is no beginning or ending work-in-process inventory Each unit requires the following direct hputs a. 300 grams of direct material which is available at a price of $0.015/gram b. 0.5 hours of direct labor at a rate of $22.00 per hour Direct labourers are paid at the end of each month. Total budgeted variable overhead costs for the 2022 year (at a level of sales estimated in Item 1 above) are as follows: Indirect materials Indirect labor Employee benefits Inspections Utilities Total $23,420 $33,456 $74,234 $18,456 $41,345 $190,911 Variable overhead is applied to compnents using a predetermined overhead rate based on annual direct labor hours. All variable overhead items are paid for in the quarter incurred. The annual budget for fixed manufacturing overhead items follows: Supervisory salaries Property taxes insurance Maintenance Utilities Depreciation Total $100,000 $15,000 $10,000 $24,500 $34,500 $22,000 $206,000