ABC ltd is preparing its budget for the 4 months commencing 1.1.20. The company makes and sells a single product. The details of the products are as follows.

Selling price - Kshs. 400 per unit

Direct material - Kshs. 50 per uni

Direct Labour - Kshs. 100 per unit

Variable labour - Kshs. 60 Per unit

The following information is also available Nov Dec Jan Feb March April Sales (units) 1300 1500 1700 1500 1800 1800 Desired closing stock 100 100 500 400 400