Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow: Finished Components C12 D57Requirements for each finished component: RM 1 10pounds 8poundsRM 2 0 4poundsRM 3 2pounds 1poundDirect labor 2hours 3hoursProduct information: Sales price$180 $250 Sales (units) 12,000 10,000 Estimated beginning inventory (units) 440 190 Desired ending inventory (units) 300 200 Direct Materials Information RM1 RM2 RM3Cost per pound$6 $3.50 $0.50 Estimated beginning inventory in pounds 2,700 1,500 500 Desired ending inventory in pounds 4,200 1,200 1,800 The firm expects the average wage rate to be $25 per hour in 2019. 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. FactoryOverheadInformationIndirect materialsvariable$8,000 Miscellaneous supplies and toolsvariable 5,200 Indirect laborvariable 44,000 Supervisionfixed 140,000 Payroll taxes and fringe benefitsvariable 290,000 Maintenance costsfixed 16,000 Maintenance costsvariable 10,030 Depreciationfixed 71,310 Heat, light, and powerfixed 43,390 Heat, light, and powervariable 15,000 Total$642,930 Selling andAdministrativeExpense InformationAdvertising$59,000 Sales salaries 150,000 Travel and entertainment 64,000 Depreciationwarehouse 4,500 Office salaries 62,000 Executive salaries 240,000 Supplies 3,500 Depreciationoffice 6,400 Total$589,400 The effective income tax rate for the company is 30%. Required:1. Prepare the Sales budget for 2019.2. Prepare the Production budget for 2019.3. Prepare the Direct materials purchases budget (units and dollars) for 2019.4. Prepare the Direct labor budget for 2019.5. Prepare the Factory overhead budget for 2019.6. Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019.7. Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2019.8. Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019.