EXAMPLE1 NEWTON LYO: FUNCTIONAL BUDGET Newton Ltd-marfactores three products; the expected sales tach product arc stown below. redact induer Products Sales in Units. 3,000 4,500 3.000 Opening stock is expected to be Product 1 500 units Product 2 700 units Product 3 500 units Management have stated their desire to reduce stock levels and closing stocks are budgeted is Product 1 200 units Product 2 300 units Products Three types of material are used in varying amounts in the act of the pro Mamal requirements per unit are shown below: PER SOLISI tres AK 2ks Material M1 3ks kg 4ks Materia M2 2kg 6kg SS Material MS The opening stock of material is expected to be 4,300kg Material M Material M2 3.700k Material M3 4,400kg Management is keen to reduce stock levels for material as well and closing stocks lower Expected levels are shown below: 2,200k Material M1 Material M2 1.300k Material M3 2.000ks 289 Performance Management Material price are expected to be 10% higher than this year and current prices art 51.10 for interior Mi.../kg for material M2 and $2.50/g for material M3. Two type of labour are used in producing the three products. Standard time per unit (in hours) are shown below Product Sheur P2 Slalod Labour 1 unstalled Labour 3 3 Sicilted labour are to be paid at the rate of 56 per hour and senki undsbilled labour at the rate of s/hour. Regatired Propre budgets for: 1 Production (in quantities) 2) Material usage budget (in quantities) 3) Material purchases (in quantities and value 1) Labour (in hours and value)