#1 (38 Marks) We Suit U Best clothing Company produces designer pants and shirts which are made in small batches. Each year, during the summer, the company plans for their new fashions/designs to come out the following Spring. Both pants and shirts are made on the same fabrication equipment that is expected to operate at capacity. Therefore, the equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. Pants and shirts are made to order, so when production batches are completed, they are shipped immediately to their wholesaler. The shipping costs vary with the number of shipments. Budgeted information for the year is as follows: Direct Materials-Pants Direct Materials Shirts Direct Labour Pants Deect Labour Shirts Setup costs Shipping costs 475,000 50,000 950,000 325,000 750,000 125,000 Design costs 250,000 Plant Uti 450,800 1975,800 Other Budget Information Pants Shirts Total Budged production in units 4,750 1250 1000 Hours of Production 5,500 3,700 9,200 Number of Batches Number of design 200 150 250 2 3