2. Prepare the companys direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units produced.

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: In addition, 6,500 grams of raw materials inventory is on hand at the start of the 1st quarter and the beginning accounts payable for the 1st quarter is $3,380. Each unit requires 8.50 grams of raw material that costs $1.60 per gram. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarter's production needs. The desired ending inventory for the 4 th quarter is 8,500 grams. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.40 direct labour-hours and direct labourers are paid $10.50 per hour. Required: 1. Prepare the company's direct materials purchases budget and schedule of expected cash disbursements for materials for the upcoming fiscal year