estion 2/30 Marks - 54 Minutes) Afriproduce CC manufactures pencils from wood and lead. Wooden planks are purchased in lengths of 2 metres at N$50 per metre. Two hundred pencils can be manufactured from one length of wood. Lead is purchased in boxes containing 200 units of the exact length needed per pencil as a cost of N$25 per box. The manufacturing process is highly automated. One hour direct labour is required for every 1 000 pencils manufactured. The labour rate is N$50 per hour. One production run requires two machine hours, during which 1 000 pencils are manufactured. Variable manufacturing overheads amount to N$200 per machine hour. Fixed manufacturing overheads are N$500 000 for the year. Selling and administrative costs amount to 5% of sales. Afriproduce CC expects to sell 750 000 pencils during 2011 at N$3 each. Production takes place uniformly during 50 weeks of the year. During the other two weeks the plant is closed for maintenance purposes. Inventory on 31 December 2010 is as follows: Finished pencils Wood Lead 13 000 100 planks 100 boxes In future only enough inventory will be kept to satisfy one week's production and sales requirements (round off to the nearest plank or box of lead). Use the information above to draw up the following budgets (in total): (2 Marks) (3 Marks) (5 Marks) (2 Marks) (2 Marks) 2.1.1 Sales budget 2.1.2 Production budget 2.1.3 Raw materials purchases budget 2.1.4 Direct labour budget 21.5 Manufacturing overheads budget