A sales budget is given below for one of the products manufactured by Kunci Enterprise: Sales budget in units January 20,000 February 35,000 March 60,000 April 40,000 May 30,000 June 25,000 The inventory of finished goods at the end of each month must equal 20% of the next month's sales. On December 31, the finished goods inventory totaled 4,000 units. Each unit of product requires three specialized electrical switches. Since the production of these specialized switches by Kunci's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs. This requirement had been met on January 1 of the current year. The prevailing retail price of the electrical switches is RM5 per unit. 10% price discount per unit is given by suppliers due to irregularity of deliveries and another 10% discount is given if bulk purchases for switches is made by Kunci. Required: 1) Prepare a production budget for Kunci Enterprise for January, February and March, and in for the quarter. (5 marks) 2) Prepare raw material budget (Electrical switches) for Kunci showing the quantity and total costs to be purchased each month for January, February, and March and in total for the quarter. The management of Kunci made it a policy to secure all purchase discounts. (5 marks) Part B: Danish Manufacturing is working on its direct labor budget for the next two months. Each unit of output requires 0.86 direct labor-hours. The direct labor rate for the 35 workers in its production is $8.20 per direct labor-hour. The production budget calls for producing 6,500 units in July and 6,000 units in August. The company guarantees its direct labor workers a 40-hour paid work week even if there is not enough work to keep them busy. Required: 1) Construct the direct labor budget for the next two months. (5 marks) 2) Explain participative budgeting as effective budgeting orientation