1. Mazoon Traders LLC manufactures two different types of gadgets, Media pad and Yoga pad. The company relies on activity based costing system. Products Media pad Yoga pad 14,900 Units of Production Direct labor hours Number of orders placed 10,900 560 920 32 25 Machine set up hours 35 35 48 40 No. of Deliveries No.of production runs 22 15 Machine set up costs 37,800 Machine running costs 46,800 Procurement costs 49,800 Delivery costs 38,800 You are required to calculate the cost per unit of Media pad and Yoga pad under ABC (2 marks) and Traditional costing method (2 marks) methods. Compare the cost per unit of production and suggest which costing method is good (1 marks). (5 Marks) 2. Al Lama Traders manufactures kid's toys. It makes two products: battery bike and gaming pad in production plant named 'star kids'. The products details, sales plan and forecast are shown in the table. 3rd Quarter Units 4th Quarter Units Product 1st Quarter Units Battery bike 6,500 Game pad 9,000 2nd Quarter Units 12,900 10,000 13,000 12,000 14.000 13,000 Assume that the selling price is OMR 29 per unit for battery bike and OMR 25 per unit for game pad. Average sales return is 10% of total sales and the discounts and bad debts amounting to 2% of the total sales. i) You are required to prepare a Sales Budget for the year 2022. (4 Marks) ii) Assume that the company expects a competitor to enter into the market. In such case, the sale of total units in each product is expected to decrease by 8%. However, the management wants retain the total sales value. Analyse and suggest a suitable way to achieve this sales target. (1 Mark) 3. Nizwa Traders is a manufacturing company which has two production plants and produces four different potatoes chips in each plant. Production Plant (1) produces Cheese, Salt, Tomato paste, and Masala:. The estimated stock levels and the sales budget information is available for the year 2020. Nizwa Traders working capital is OMR 300,000, cash balance OMR 80,000 and its total sales budgeted is OMR 310,000. Estimated Sales as per Sales Budget (Units) Production Plant (1) Estimated Stock at the Estimated Stock at the end of the Budgeted Beginning of the Budgeted Product Period(Units) Period (Units) 10,000 9,000 Cheese 6,000 9,000 Salt 12,000 11,000 Tomato pastel 11,000 12,000 Masala 5,000 33,000 34,000 32,000 You are required to prepare a separate production budget for the plant.(4 marks) Analyse how the production budget helps to maximise profitability of the organization (1 Mark)