he Year 203 purchased during April estion #1 stimated the Yo Y Question # 3: Truro manufactures a single product, Q. with a single grade of labour. Its sales budget and finished goods inventory budget for period 3 are as follows. Sales 700 units Opening inventories, finished goods 50 units Closing inventories, finished goods 70 units The goods are inspected only when production work is completed, and it is budgeted that 10% of finished work will be scrapped. The standard direct labour hour content of product Q is three hours. The budgeted productivity ratio for direct labour is only 80% (which means that labour is only working at 80% efficiency). The company employs 18 direct operatives, who are expected to average 144 working hours cach in period 3. Required: (a) Prepare a production budget. (b) Prepare a direct labour budget. (e) Comment on the problem that your direct labour budget reveals, and suggest how this problem might be overcome. Thc els