17.8A Corby Thirlwell Limited manufactures ornamental birdbaths made out of reconstituted stone. The company works on a rolling budget system, and its senior management is currently examining forecasts for the month of June 20X1. June is a big month for sales in the birdbath business, and the directors are optimistically forecasting sales of 3250 units. They intend to launch a sales incentive scheme to encourage the sales staff to sell more birdbaths; from the beginning of 20X1 each birdbath sold will result in a payment of £1.50 to the salesperson. The selling price of each birdbath is £65.
The production cost structure of one birdbath is as follows:
Per unit £
Direct materials 18.00 Direct labour 12.57 Production overhead recovery 13.86 Production cost 44.43 Administrative overheads for June 20X1 are forecast at £12 479, and selling and distribution overheads (excluding the cost of commission) are forecast at £10220.
Prepare a budget profit and loss account for the month of June 20X1.