1. You're required to set up a budget for the year ending 2022: 1. Sales budget (3 marks) 2. Production budget (3 marks) 3. Purchase and use budget of direct raw materials (3 marks) 4. Direct labour budget (3 marks) 5. Manufacturing overhead budget (3 marks) 6. Final stock budget (3 marks) 7. Budget of cost of goods of sale (3 marks) 8. Support share budget (3 marks) 9. Budget income statement for 2022 (3 marks) 2. Briefly explain THREE (3) the importance of cash budgets and how they relate to the organization's strategy. 1. Total hours and direct labor costs: Direct labour Installation Testing Hours Cost per hour 1.5 RM22 0.15 RM12 2. Based on the operating costs of the previous year the overhead costs are: The cost of overheads changes manufacturing RM Purchase 15.50 Indirect Labour 22.00 Maintenance 12.60 Others 7.80 Total 57.60 3. The fixed cost of the plant is: RM Depreciation 2,750,000 Tax on property 1,660,000 Insurance 1,560,000 Factory Supervisor 2,711,000 Side benefits/Fringe benefit 6,231,000 Others 1,270,00 4. Overhead costs are absorbed into the production quantity budget. The estimated operating costs of the support parts that are considered to be fixed costs are: Administration RM Promotion Delivery Customer service 14,720,550 12,110,170 3,190,000 1,970,600 5. Income tax on profit is estimated at 27% QUESTION 2 The purpose of this assignment is to enable students to understand the relevance of the financial planning of the company through the preparation of a budget. Woody Sdn Bhd is a furniture manufacturer made from teak wood. The following is the information that has been collected from other sections. 1. The company's managers estimate that 420,000 tables from teak wood will be sold for RM700 each. 2. According to accounting records, the initial stock of tables from teak wood is 3,700 with the cost 3. of each wooden table being RM550.60. The manager is of the opinion that the final stock should be increased to 4,200 units as the sales volume is expected to increase. The initial stock of direct raw materials is as follows: 4. 5. RM Wood teak 95,000 Nails and components 30,000 Cat Polyurethane 65,000 Total 190,000 Cost per unit of direct raw materials: Wood teak Nails and components Cat Polyurethane RM 95 30 65 168 16 The manager requires the final stock to be as follows: RM Wood teak 80,000 Nails and components 26,500 Cat Polyurethane 60,500 Total 167,000