dia Pty Ltd produces patio heaters for household use. The following information has been gathered so that a production budget, a direct materials budget and a direct labour budget for part of 2017 can be prepared.

The materials and labour requirements per unit are as follows:

Management prefers a finished goods ending inventory for each quarter that equals 25% of expected sales for the next quarter. Also, the ending inventory balance of direct materials should equal 25% of the next quarters production requirements. The inventory balances on 1 January 2017 are forecast as:

The forecast quarterly sales in units are

a) Prepare a quarterly production budget, in units only, for the March, June and September quarters of 2017.

b) Prepare a direct materials budget for the March and June quarters of 2017 in both units and dollars (rounded to full dollars).

c) Prepare a direct labour budget (hours and dollars) for the March and June quarters of 2017.