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CoursHeroTranscribedText: [The following information applies to the questions displayed below) Iguana. Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12 00 per hour Iguana has the following inventory policies: . Ending finished goods inventory should be 40 percent of next month's sales. . Ending row materials inventory should be 30 percent of next month's production Expected unit sales (frames) for the upcoming months follow. March 275 April 250 May 300 June 400 July August 475 Variable manufacturing overhead is incurred at a rate of 10.30 per unit produced Annual fived manufacturing overhead is estimated to be $7200 ($600 per month) for expected production of 4000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold. Iguana, Inc. had $10,800 cash on hand on April 1. Of its sales, BO percent is in cash, Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month Raw materials purchases for March 1 totaled $2 000. All other operating costs are paid during the month incurred Monthly fixed manufacturing overhead includes $150 in depreciation, During April, Iguana plans to pay $3 090 for a piece of equipmentComplete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations to 2 decimal places.) IGUANA, INC. Budgeted Income Statement For the Quarter Ending June 2nd Quarter April May June Total Budgeted Gross Margin S $ $ Budgeted Net Operating Income $ S S

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