ABC Corp. manufactures a single product that is produced by blending two chemicals, A and B. Chemicals A and B are mixed in batches to produce the final product. The batch size is not variable, and each batch requires 200 litres of Chemical A, 50 litres of Chemical B, five labour hours, one set of four protective sheets and one container, which is used for blending Chemicals A and B. The resulting product is packaged in one-litre containers; therefore, each batch yields 250 (250 1) units of the final product. The following table summarizes the amount of each variable item required per batch of product and the total cost of that item per batch of product: Direct materials: Chemical A Chemical B Direct labour Variable overhead: Protective sheets Container 200 litres 50 litres 5 hours January 2,100 4 units 1 unit Madill has signed a contract to deliver the following amounts over the next six months. Madill is paid $15 per unit for this product. Payment is 50% in the month of delivery and 50% in the month following delivery. February March 2,400 3,100 $900 $400 $140 April May 2,800 2,300 $720 $120 June 2,500 Sales (units) Since the product is unstable, Madill produces on demand and holds no inventories. All chemical purchases are paid 30% in the month of production, 40% in the second month and 30% in the third month following. Direct labour is paid in the month of production. Variable overhead items are paid in the month following the month of production. Fixed manufacturing overhead is $6,000 per month, including $500 for depreciation of property, plant and equipment. All selling and administration costs are variable and are 10% of sales. This is the first six months of operation. The opening balance sheet is as follows: Cash Property, plant and equipment Total assets $ 10,000 100,000 $ 110,000 Liabilities and equity Common shares Total liabilities and equity $ 110,000 $ 110,000 Required: a) Develop the cash collection budget for this product. b) Develop the production budget for this product. c) Develop the materials purchase budget for this product. d) Develop the direct labour budget for this product. e) Develop the variable overhead budget for this product. f) Prepare a cash flow budget for this product. g) Prepare a budgeted balance sheet and budgeted income statement. h) Assume there is a production constraint, and the maximum number of batches that can be produced in any month is 11. Develop a cash flow budget for this product.