BUDGETS 41 Question 2 a) Explain TWO (02) objectives of a budgetary planning and control system b) Jonathan PLC has recently completed its sales forecast for the year to 31 December 2018. expects to sell one product called VEET at $150 Sales demand is expected to be 15,000 units of VEET in 2018 One unit of product VEET uses raw materials and skilled labour as follows: 5 kgs Material 001 Material 002 6 kgs 4 hours Skilled Labour Unskilled Labour 7 hours The prices expected during 2018 for the raw materials are as follows Material 001 $2.00 per kg Material 002 $3.00 per kg The skilled labour and unskilled labour rates are expected to be $5.00 and $4.00 per hour respectively Stocks of raw materials and finished goods on 15 January 2018 are expected to be as follows: Material 001 300 kgs Material 002 350 kgs VEET 600 units All stocks are to be reduced by 20% for their opening levels by the end of 2018 Required: Prepare the following budgets for the year 2018, Sales budget (in units and value) Production budget in units) Material usage budget in kgs) Material purchase budget in kgs and value) Lato Budget (in hours and value) [2 marks] [3 marks [3 marks] [3 marks) [3 marks! [Total 20 marks]