PA4. LO 7.2 Prepare a budgeted income statement using the information shown. Sales (units) 15,000 Sales price per unit $ 40 Uncollectible expense 1%* Direct material per unit $ 2 Direct labor per unit (hours) 0.5 Direct labor rate per hour $ 20 Manufacturing overhead $15,000 Variable sales and administration expenses per unit $ 2 Fixed sales and administration expenses $20,000 Taxes 15%** *of sales **of income before taxes Solution Budgeted Income Statement For the Year Ended Dec. 31, 2020 Sales Direct Materials Direct Labor Manufacturing Overhead Cost of Goods Sold Gross Profit Variable Sales and Administrative Expenses Fixed Sales and Administrative Expenses Uncollectible Expense Income Before Taxes Income Tax Expense Net Income