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Durham Inc. is preparing its annual budgets for the year ending December 31, 2010. Accounting assistants furnish the following data.
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $750,000 for product LN 35 and $590,000 for product LN 40, and administrative expenses of $420,000 for product LN 35 and $380,000 for product LN 40. Income taxes are expected to be 30%.
Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be prepared.
(a) Sales (b) Production (c) Direct materials (d) Direct labor (e) Income statement ( Note: Income taxes are not allocated to the roducts )