Bags Ltd makes and sells upmarket carry bags for laptop computers. Iakopo is

responsible for preparing Bags Ltd$$s master budget and has assembled the following data

for next year.

The direct labour rate includes wages, all employee$-$related benefits and the employer$$s

share of payroll tax. Labour$-$saving machinery will be fully operational by March. Also,

as of $1$ March, the entity$$s enterprise agreement calls for an increase in direct labour

wages that is included in the direct labour rate.

Bag$$s Ltd expects to have $10000$ bags in inventory at the beginning of the year, and has

a policy of carrying $50$ per cent of the following month$$s projected sales in inventory