Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2022 follow:

	Finished Components
C12	D57
Requirements for each finished component:
RM 1	10	pounds	8	pounds
RM 2	0		4	pounds
RM 3	2	pounds	1	pound
Direct labor	2	hours	3	hours
Product information:
Sales price	$ 200		$ 210
Sales (units)	12,000		12,000
Estimated beginning inventory (units)	420		110
Desired ending inventory (units)	300		200

	Direct Materials Information
RM1	RM2	RM3
Cost per pound	$ 6	$ 3.50	$ 0.50
Estimated beginning inventory in pounds	3,200	1,200	1,300
Desired ending inventory in pounds	3,600	1,300	1,200

The firm expects the average wage rate to be $30 per hour in 2022. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical.

	Factory Overhead Information
Indirect materials?variable	$ 12,000
Miscellaneous supplies and tools?variable	4,500
Indirect labor?variable	45,000
Supervision?fixed	120,000
Payroll taxes and fringe benefits?variable	210,000
Maintenance costs?fixed	16,000
Maintenance costs?variable	10,090
Depreciation?fixed	71,350
Heat, light, and power?fixed	43,390
Heat, light, and power?variable	15,000
Total	$ 547,330

	Selling and Administrative Expense Information
Advertising	$ 57,000
Sales salaries	210,000
Travel and entertainment	63,000
Depreciation?warehouse	5,000
Office salaries	59,000
Executive salaries	280,000
Supplies	4,500
Depreciation?office	6,300
Total	$ 684,800

The effective income tax rate for the company is 50%.

Spring Manufacturing Company has had a continuous improvement (kaizen) program for the last two years. According to the kaizen program, the firm is expected to manufacture C12 and D57 with the following specifications:

Cost Element	C12	D57
Raw material 1	9	pounds	7	pounds
Raw material 2	0		3.6	pounds
Raw material 3	1.8	pounds	0.8	pound
Direct labor	1.5	hours	2.0	hours

The company specifies that the variable factory overhead is to decrease by 10% while the fixed factory overhead is to decrease by 5%, except for depreciation expenses. The company does not expect the price of the raw materials to change. However, the hourly wage rate is likely to be $30.

Required:

Assume the firm can attain the expected operating level as prescribed by the kaizen program:

1-a.Prepare the Sales budget for 2022.

1-b. Prepare the Production budget for 2022.

1-c. Prepare the Direct materials purchases budget (units and dollars) for 2022.

1-d. Prepare the Direct labor budget for 2022.

1-e. Prepare the Factory overhead budget for 2022.

1-f. Prepare the Cost of goods sold and ending finished goods inventory budgets for 2022.

1-g. Prepare the Selling and administrative expense budget for 2022.

1-h. Prepare the income statement, the last item of which is labeled After-tax Operating Income for 2022.

Colorado State University Global X | MeGrow Hill Comment ACT460 ) Question 1 - Module & Option . X + A @ http/eztombeducation.com/ext/map/index.html?_con=confexternal_browser=08launchUrl=http:6253496252%252Fims.mheducation.com/6252F_ At & ta Module 5: Option #2 - Master Budgets Saved Help Save & Exit Submit Required information Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req 1D Req 18 Req 1F Req 1G Req 1H 20 points Prepare the Sales budget for 2022. SPRING MANUFACTURING COMPANY References Sales Budget For the Year 2022 C12 D57 Total Sales (in units] Selling price per unit Total revenue Group 1 ) Question 1 - Module 5: Option # X Search Results | Course Hero Mail - luis ruiz - Outlook * + O X CA https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https96253A96252F%252Fims.mheducation.com6252F... At @ to Module 5: Option #2 - Master Budgets Saved Help Save & Exit Submit Required information 1-h. Prepare the income statement, the last item of which is labeled After-tax Operating Income for 2022. Complete this question by entering your answers in the tabs below. 20 points Req 1A Req 18 Req 1C Req 1D Req 1E Req 1F Req 1G Req 1H References Prepare the Production budget for 2022. SPRING MANUFACTURING COMPANY Production Budget For the Year 2022 C12 D57 Budgeted sales (in units) Total units needed Budgeted production (in units) Mc Graw Hill 9:26 PM Clear Q. Search 3/9/2023Group 1 ) Question 1 - Module 5: Option # X Search Results | Course Hero Mail - luis ruiz - Outlook * + O X CA https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https96253A96252F%252FIms.mheducation.com6252F.. At @ to Module 5: Option #2 - Master Budgets Saved Help Save & Exit Submit Required information SPRING MANUFACTURING COMPANY Direct Materials Purchases Budget (units and dollars) For the Year 2022 20 C12 D57 Total points Raw material (RM) 1: Budgeted production References RM 1 needed for production Total RM 1 needed (Ibs.) Required purchases of RM 1 (1bs.) Budgeted purchases, RM 1 Raw material (RM) 2: Budgeted production RM 2 needed for production Total RM 2 needed (Ibs.) Mc Graw Hill Clear Q. Search 9:27 PM 3/9/2023Group 1 ) Question 1 - Module 5: Option # X Search Results | Course Hero Mail - luis ruiz - Outlook * + O X CA https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https6253A96252F%252FIms.mheducation.com%252F.. At @ to Module 5: Option #2 - Master Budgets i Saved Help Save & Exit Submit Required information Total RM 2 needed (Ibs.) 20 Required purchases of RM 2 (1bs.) points Budgeted purchases, RM 2 References Raw material (RM) 3: Budgeted production RM 3 needed for production Total RM 3 needed (Ibs.) Required purchases of RM 3 (Ibs.) Budgeted purchases, RM 3 Mc Graw Hill Clear Q. Search 9:27 PM 3/9/2023Group 1 ) Question 1 - Module 5: Option # X Search Results | Course Hero Mail - luis ruiz - Outlook * + O X CA https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https26253A9%252F6252FIms.mheducation.com%252F.. At @ to Module 5: Option #2 - Master Budgets Saved Help Save & Exit Submit Required information Req 1A Req 1B Reg 1C Req 1D Req 1E Req 1F Req 1G Req 1H 20 Prepare the Direct labor budget for 2022. (Round "Direct labor hours per unit" to 1 decimal place.) points SPRING MANUFACTURING COMPANY Direct Labor Budget References For the Year 2022 C12 D57 Total Budgeted production Total direct labor hours needed Budgeted direct labor costs Mc Graw Hill Q. Search 9:28 PM Clear 3/9/2023Group 1 ) Question 1 - Module 5: Option # X Search Results | Course Hero Mail - luis ruiz - Outlook * + X CA https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https96253A96252F%252Fims.mheducation.com%252Fmghmi.. A* to .. . Module 5: Option #2 - Master Budgets Saved Help Save & Exit Submit Required information Req 1A Req 1B Req 1C Req 1D Req 1E Req 1F Req 1G Req 1H Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2022. 20 points SPRING MANUFACTURING COMPANY Selling and Administrative Expense Budget For the Year 2022 References Selling expenses: Administrative expenses Total selling and administrative expenses Mc Graw Hill Clear Q. Search W 9:29 PM 3/9/2023Group 1 ) Question 1 - Module 5: Option # X Search Results | Course Hero Mail - luis ruiz - Outlook * + X CA https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https96253A96252F%252FIms.mheducation.com6252Fmghmi.. A to .. . Module 5: Option #2 - Master Budgets Saved Help Save & Exit Submit Required information I-1. Prepare the Cost of goods sold and ending finished goods Inventory Duagets Tor 2024. 1-g. Prepare the Selling and administrative expense budget for 2022. 1-h. Prepare the income statement, the last item of which is labeled After-tax Operating Income for 2022. 20 Complete this question by entering your answers in the tabs below. points References Req 14 Req 18 Req 1C Req 1D Req 1E Req 1F Req 1G Req 1H Prepare the Cost of goods sold and ending finished goods inventory budgets for 2022. (Do not round intermediate calculations. Round "Cost per unit" to 5 decimal places. SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2022 C12 D57 Total Sales volume Cost of goods sold Ending finished goods inventory Budgeted ending inventories Mc Graw Hill 9:29 PM Clear Q. Search W 3/9/2023Group 1 ) Question 1 - Module 5: Option # X Search Results | Course Hero Mail - luis ruiz - Outlook * + X CA https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https96253A96252F%252Fims.mheducation.com9%252Fmghmi.. A* to .. . Module 5: Option #2 - Master Budgets Saved Help Save & Exit Submit Required information Req 1A Req 1B Req 1C Req 1D Req 1E Req 1F Req 1G Req 1H Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2022. (Round "Cost per unit" to 5 decimal places. Do not round any other intermediate calculations. Round your answers to the nearest whole 20 dollar.) points SPRING MANUFACTURING COMPANY Budget Income Statement References For the Year 2022 C12 D57 Total Mc Graw Hill 9:29 PM Clear Q. Search W 3/9/2023