LO 8-3a, b, PA8-1 Preparing Operating Budgets c, d, e, f, gquana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies Ending finished goods inventory should be 40 percent of next month's sales Ending raw materials inventory should be 30 percent of next month's production Expected unit sales (frames) for the upcoming months follow 275 250 300 400 375 425 March Ma une August Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold Required: Prepare the following for lguana, Inc., for the second quarter (April, May, and June). Include each month as well as the quarter 2 total for each budget 1. Sales budget. 2. Production budget 3. Raw materials purchases budget. 4. Direct labor 5. Manufacturing overhead budget 6. Budgeted cost of goods sold 7. Selling and administrative expenses budget