A. Comtrex Company Ltd is preparing a budget for the next fiscal period. 120 000 labour hours will be 100% level of expected productive time, but a flexible budget at 90%, 110% and 120% is required so that cost allowances can be set for these possible levels. Fixed Costs per annum Depreciation Staff salaries Insurances Rent and Rates Budgeted costs details $ 22 000 43 000 9 000 12 000 Variable Costs Power Consumables Direct labour $0.30 per direct labour hour $0.05 per direct labour hour $3.50 per direct labour hour Semi-Variable Costs Analysis of past records, adjusted to eliminate the effect on inflation shows the following: Direct labour hours Last year 6 Year 5 Year 4 Year 3 Year 2 Year 1 110 000 100 000 90 000 87 000 105 000 80 000 Total Semi-variable cost $ 330 000 305 000 280 000 272 500 317 500 255 000 The Comtrex Company Ltd has the following budgeted sales for the next six-month period: Month Unit Sales June 90,000 July 120,000 August September October November 210,000 150,000 180,000 120,000 There were 30,000 units of finished goods inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five pounds of materials are required for each unit produced. Each pound of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 15,000 pounds Required: Prepare production budgets for July, August and September