Prepare a master budget for V & T Faces, Inc., for the next year. Assume an income tax rate of 40 percent. Include the following:

Sales budget

Production budget

Direct-material budget

Direct-labor budget

Production-overhead budget

Selling and administrative expense budget

Budgeted income statement

V&T Faces, Inc. manufactures to types of makeup foundation Type Sis for sensitive skin and type Nis for non-sensitive skin. The products have the following materials and labor requirements: Type N Types Direct materials required per 100 bottles Liquid medium 30 pounds 70 pounds Pigmenta 20 pounds 30 pounds Direct labor required per 100 bottles ($12/hour) 25 hour 50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on the production volume of 495,000 bottles. Production overhead is applied on the basis of direct-labor hours. Indirect material $10,500 Indirect labor 49,000 Utilities 25,000 Property taxes 16,000 Insurance 18,000 Depreciation 30,000 Total $148,500 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel $80,000 Advertising 15,000 Management salaries and fringe benefits 85,000 Clerical wages and fringe benefits 25.000 Miscellaneous administrative expenses 5,000 Total $210,000 The sales forecast is as follows: Sales Volume Sales Price Type N 500,000 bottles $90 per hundred bottles Types 500,000 bottles $130 per hundred bottles The following inventory information is available. The unit production costs for each product are expected to be the same this year and the following year. Expected Inventory January 1 Desired Ending Inventory December 31 Finished Goods Type N 10,000 bottles 5.000 bottles Types 20,000 bottles 15,000 bottles Raw Material Pigment A 15,000 pounds 5.000 pounds Liquid medium 5.000 pounds 10,000 pounds Required