Hi, there are two short questions at the end of the sheet. Thank you!

BAGBONNE LTD BAGBONNE LTD has manufactured quality leather goods for many years. As a result of strong international competition in 2016, for the first time in its history, the business made a loss. In response, the company decided to drastically reduce its product range and concentrate on its best selling and most profitable items. They still hope to benefit from economies of scale by producing and selling just 2 types of handbags: Bleuglace and Tournesol. From the following information, using the pro formas provided, create the budget for the year ended 31t December 2017 Sales forecast Bleuglace 060,.00 our Number of bags sold Selling price per bag 25,000 100 Standard production data Bagbonne Ltd has 2 production departments: Cutting and Stitching Unit costs: Direct labour rates Raw materials Cutting 15 per hour ching 15 per hour Zip fasteners per unit per unit duct content Bleuglace Tournesol Leather 2 units Cutting dept. labour Stitching dept.labour 2 hours, 2 units 1 hour 0.5 hours Production overheads Cutting department Stitching department Fixed Variable Fixed Indirect labour 24,000 Indirect materials Rent of premises El 58,000 8,000 201.880 47,970 Marketing overheads Administration overheads 294.000 356,000 40,000 Bank charges 540,000 Inventorv forecast Completed bags Raw materials (units) (units) 64,000 6,000 Leather Zips Bleuglace Tournesol Opening inventory Closing inventory 8,000 The unit cost of a completed handbag for both Bleuglace and Tournesol in the opening nventory is 55 Receivables and Raw materials, labour, all overheads and interest on a loan will be paid in full through the bank and cash accounts. Receivables and payables at 1t January 2017 will pay and be paid during 2017. Receivables and payables at 31s December 2017 are expected to be 480,000 and 120,000 respectively. One year's interest on the loan is paid during the year. The principal will not be paid unl 2020. Non-current tangible assets There are no disposals during 2017 but some new equipment will be acquired, on cash terms, for 160,000 just before the end of 2017 Statement of financial position (balance sheet) at 1t January 2017 Non-current assets Cost Depreciation to Net book value angible 788,000 423,000 Receivables Bank and cash Total assets Shareholders equity ts Total equity 1,50 1,000 Non-current liabilities 10% bank loan Current liabilities Total tabilities Total equity and liabilities Fill in here: BAGBONNE LTD-PRO FORMAS 5. Direct labour hours budget year end 31st December 2017 Labour content in produced Total Rate Total labour labour costs per hour product hours Cutting dept l5 15 Stitching dept Bleuglace 15 6. Production overheads budget year end 31st December 2017 Cutting department (expected 150,000 direct labour hours) Stitching department (expected 61,000 direct labour hours) Fixed Variable costs costs Indirect labour Indirect materials Rent of premises Electricity Total labour hour