Rimham plc prepares its budgets annually and as the accountant you are responsible for this task. The following standard data is available: Material content Product X Product Y Product Z kg kg kg Material 1 - 18 24 Material 2 4 14 * Material 3 12 10 6 Material 4 8 - 18 Material prices Price per kg £ Material 1 0.1 Material 2 0.15 Material 3 0.25 Material 4 0.05 Labour content Product X Product Y Product Z hours hours hours Department A 2.5 1.5 3 Department B 2 1.5 3 Labour rates Rate per hour £ Department A 1.6 Department B (2 Additional budgeted information Direct labour hours 635,000 Production overheads £1,143,000 @ Production overheads are absorbed in the direct labour hour rate method. @ Administration and selling overheads are absorbed as a percentage of production cost at the rates of 50% and 25%, respectively. @ Profit is estimated at 12'/2% on budgeted selling price. @ Sales, at standard selling price, for the following year are budgeted as follows: Product € Xx 800,000 Y 1,280,000 Z 2,400,000 In order to meet the needs of an expansion programme the company considers it necessary to increase inventory as follows: Material 1 90,000 kg Material 2 36,000 kg Material 3 42,000 kg Material 4 54,000 kg Finished goods Product X 5,000 units Product Y 10,000 units Product Z 10,000 units You are required to prepare the following:

(a) A schedule giving a detailed standard cost and standard selling price per unit for each product.

(b) The sales budget in units.

(c) The production budget in units. eS

(d) The direct material purchases budget in both units and value. ee ‘ .