1 Master Budget and Responsibility Accounting (10 marks total) 2 3. Calico produces two products: Basic Leather and Fancy Leather. Use the information below to answer the requirements. 1 Basic Leather Fancy Leather 5 Expected sales (units) 40000 20000 - Expected ending inventory 8000 4000 3. Current beginning inventory 2000 1600 2 0 Each product has two labour operations: cutting and dyeing. Information on labour is found below: 1 2 Basic Leather Fancy Leather 3 Direct labour hours for cutting process 2 4 Direct labour hours for dyeing process 2 5 6 Cutting Dyeing 7 Direct labour rate for cutting ($/direct labour hour) $ 40.00 $ 50.00 per direct labour hour 8 9 Required: 0 Prepare a production budget and direct labour budget for basic leather and fancy leather. 1 2 4