PART 1: Consider the following data in preparing Ballarat Furniture Company's budget for 2013: 

Product specification for each table for 2013
Direct Materials 
Particle Board (PB) 9 board feet (bf) per table
Red Oak (RO) 10 board feet (bf) per table

Direct Manufacturing Labour
Laminating labour 0.25 hours per table
Machining labour 3.75 hours per table 

Inventory information for 2013 Beginning Inventory Target Ending Inventory 
PB 20,000 bf 18,000 bf 
RO 25,000 bf 22,000 bf 

Finished goods - tables (units) 5,000 3,000 

Sales forecast for 2013
Sales volume 52,000 tables
Sales price $392 per table

Cost information: 2012 2013 
PB per board feet $3.90 $4.00 
RO per board feet $5.80 $6.00 
Laminating labour per hour $24.00 $25.00 
Machining labour per hour $29.00 $30.00 

Variable manufacturing overhead costs $1,900,000 
Fixed manufacturing overhead costs $1,600,000 
Manufacturing overhead application base Expected Direct Labour hours 
Inventoriable (manufacturing) cost per table $275
In addition to the above, the following selling and administrative expenses are expected for 2013: 

Salaries of Sales personnel $555,760 
Marketing $1, 920,720 
Distribution $729,600 
Customer service $504,992 
Administrative $440,768 

Required: 

Prepare an annual budget for Ballarat Furniture Company for 2013. Assume an income tax rate of 40 percent. Include the following schedules: 

a. Sales budget 
b. Production budget (in units) 
c. Direct materials usage budget (in units and in dollars) 
d. Direct labour budget 
e. Budgeted income stateme