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can someone explain how to do this please Question 2. Operating Budget Lanning Company produces a variety of labels, including iron-on name labels, which are

image text in transcribedcan someone explain how to do this please

Question 2. Operating Budget Lanning Company produces a variety of labels, including iron-on name labels, which are sold to parents whose children are going to school camp. (Campers are required to have their name on every article of clothing.) Each roll consists of 25 metres of paper strip with 1 000 copies of the child's name. Each metre of paper strip costs $0.15. Lanning has budgeted production of the label rolls for the next four months as follows: Rolls 10 000 30 000 50 000 6 000 April Inventory policy requires that sufficient paper strip be in ending monthly inventory to satisfy 20% of the following month's production needs. The inventory of paper strip at the beginning of January equals exactly the amount needed to satisfy the inventory policy. Each roll of labels produced requires (on average) 0.04 direct labour hours. The average cost of direct labour is $16 per hour. Required Prepare a direct materials purchases budget for January, February and March, showing purchases in metres of paper strip and in dollars for each month a. b. Prepare a direct labour budget for January, February and March, showing the hours needed and the direct labour cost for each month

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