A) The production department of Sydney (Pty) Ltd has submitted the following forecast of units to be produced by quarter for the upcoming financial year

Units to be produced	1st quarter	2nd quarter	3rd Quarter	4th Quarter
	12000	10 000	13000	14000

Each unit requires 0,2 direct labour hour and direct labourers are paid R12 per hour. In addition ,the variable manufacturing Overhead rate is R1.75 per direct labour hour. The fixed manufacturing overhead is R86 000 per quarter. The only non-cash element of manufacturing overhead is depreciation which is R23 000 per quarter.

Required 1. Prepare the company s direct labour budget for the upcoming financial year ,assuming g that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. Prepare the companys manufacturing overhead budget.

B) What are the advantages and disadvantages of using the payback method in appraising projects?