Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 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 $ 180 $ 240 Sales (units) 12,000 9,000 Estimated beginning inventory (units) 450 190 Desired ending inventory (units) 300 200 Direct Materials Information RM1 RM2 RM3 Cost per pound $ 2 $ 1.50 $ 0.50 Estimated beginning inventory in pounds 2,900 2,000 700 Desired ending inventory in pounds 3,800 1,100 1,900 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. Factory Overhead Information Indirect materialsvariable $ 10,000 Miscellaneous supplies and toolsvariable 5,100 Indirect laborvariable 42,000 Supervisionfixed 160,000 Payroll taxes and fringe benefitsvariable 220,000 Maintenance costsfixed 17,000 Maintenance costsvariable 10,040 Depreciationfixed 71,310 Heat, light, and powerfixed 43,450 Heat, light, and powervariable 9,000 Total $ 587,900 Selling and Administrative Expense Information Advertising $ 57,000 Sales salaries 220,000 Travel and entertainment 63,000 Depreciationwarehouse 4,800 Office salaries 61,000 Executive salaries 260,000 Supplies 3,700 Depreciationoffice 6,000 Total $ 675,500 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