17.12 Dorchester Slugg Limited manufactures plastic refuse bins. Its monthly budget for August 2013 is as follows:

£

Sales: 4000 units  £18 72 000 Direct materials: 4000  (7 kg  £1) (28 000)

Direct labour: 4000  (0.5 hours  £6.00) (12 000)

Production overheads (10 000)

22 000 Selling and administrative overheads (4 000)

18 000 Dorchester Slugg does not absorb production overheads using an overhead absorption rate. It may be assumed that all of its overheads are fixed in nature.

Required: flex the budget for a sales and production level of 4500 units.