A company is engaged in the manufacture of specialised sub-assemblies required for certain electronic equipment. The company envisages that in the forthcoming month December, 2020, the sales will be in the ratio of 3: 4:2 respectively of sub-assemblies, ACB, MCB and DP. The following is the schedule of components required for manufacture Component requirements Sub-assembly Selling Price Base beard ICOS ICI2 JC26 ACB 520 8 2 MCB 500 2 10 6 DP 350 1 2 4 B Purchase price 60 20 12 B The direct labour time and variable overheads required for each of the sub assemblies are: Labour hours Variable overhead 4 Grade A Grade B ACB 76 36 MCB 72 24 DP 8 24 Direct wage rate per hour (7) The labourers work 8 hours a day for 25 days a month. The opening stocks of sub-assemblies and components for December, 2020 are as under: Sub-assemblies Components ACB 800 Base Board 1,600 MCB 1,200 ICOS 1.200 DP IC12 6.000 IC26 4.000 Fixed overheads amount to 17,57,200 for the month and a monthly profit target of 12 locs has been set 2.800 The Institute of Chartered Accountants of India 15.46 COST AND MANAGEMENT ACCOUNTING The company is eager for a reduction of closing inventories for December, 2020 of sub-assemblies and components by 10% of quantity as compared to the opening stock PREPARE the following budgets for December 2020 (a) Sales budget in quantity and value (b) Production budget in quantity