i. From the data above create the Direct labour budget.

1 Klean Steppers Team Girls Design Sneakers Direct Materials 2 3 Type of sneakers Leather Cushion Labour Leather Cushion Labour Leather Cushion Labour Leather Labour Leather Cushion 4 JULY AUGUST SEPTEMBER 0.15m Cushion OCTOBER 0.15m 5 0.6m 0.15m 0.6m 0.15m 0.6m 0.6m QUARTER 0.6m 0.15m 1050 6 250 290 320 190 7 Budgeted sales in units Beginning Inventory Cash Sales 0 0 174 43.5 299.8 63.5 6.2 13 8 $ 27,750.00 $ 21,250.00 $ 32,190.00 $ 4,785.00 $ 24,650.00 $ 35,520.00 $ 5,280.00 $ 27,200.00 $ 21,090.00 $5,272.50 $ 16,150.00 4,125.00 $ 43.5 Closing Inventory 174 192 48 6.2 13 9 10 11 370 220 340 pr hr 12 13 14 15 Klean Stoppers Team Boys Design Sneakers Direct Materials 16 17 Type of sneakers Leather Cushion Labour Leather Labour Leather Labour Leather Cushion Labour Leather Cushion 18 0.4m 0.10m 0.4m Cushion 0.10m AUGUST 0.4m 0.4m 0.10m 0.4m 0.10m 19 Cushion 0.10m SEPTEMBER 280 JULY OCTOBER QUARTER 865 20 Budgeted sales in units 195 230 160 21 Beginning Inventory 0 0 0 92 112 28 64 16 22 23 2,530.00 $ Cash Sales $ 14.430.00 $ 2.145.00 $ 13.260.00 $ 17,020.00 $ 15.640.00 $ 20.720.00 $ 3,080.00 $ 19,040.00 $ 11,840.00 $ 1,760.00 $ 10,880.00 23 Closing Inventory 92 23 112 28 64 16 24 Direct Materials and Direct labour (a) The sneakers are made with special leather and specially treated rubber for the sole. The materials and labour required to make each pair of sneakers are as follows: Type of sneakers Leather $370 per meter 0.6m 0.4m Cushion $220 per meter 0.15m 0.10m Labour $340 per hour 15 minutes 12 minutes Girls Boys The company requires a closing inventory of 10% of raw material required for the following months material needed. There was no opening stock of raw material. The company plans to have a closing inventory of leather of 6.2m and 13m of cushioning material as at the 30th September. Materials are purchased from a company based in the Cayman Island. This supplier requiresthat 50% of the purchase total is paid for in cash with the order, and allows one month's credit for the remaining amount. (b) In keeping with government requirements, biodegradable cardboard boxes will be used to package the sneakers. Each box will cost $28.50 per box. The company will buy the packaging materials from a Jamaican company for cash each month. (c) To make girls' sneakers, each unit requires 15 minutes of direct labour hours and to make boys' sneakers each unit requires 12 minutes of direct labour hours. The company pays $340 per hour for each direct labour hour. Labour costs are paid in the month incurred. 1 Klean Steppers Team Girls Design Sneakers Direct Materials 2 3 Type of sneakers Leather Cushion Labour Leather Cushion Labour Leather Cushion Labour Leather Labour Leather Cushion 4 JULY AUGUST SEPTEMBER 0.15m Cushion OCTOBER 0.15m 5 0.6m 0.15m 0.6m 0.15m 0.6m 0.6m QUARTER 0.6m 0.15m 1050 6 250 290 320 190 7 Budgeted sales in units Beginning Inventory Cash Sales 0 0 174 43.5 299.8 63.5 6.2 13 8 $ 27,750.00 $ 21,250.00 $ 32,190.00 $ 4,785.00 $ 24,650.00 $ 35,520.00 $ 5,280.00 $ 27,200.00 $ 21,090.00 $5,272.50 $ 16,150.00 4,125.00 $ 43.5 Closing Inventory 174 192 48 6.2 13 9 10 11 370 220 340 pr hr 12 13 14 15 Klean Stoppers Team Boys Design Sneakers Direct Materials 16 17 Type of sneakers Leather Cushion Labour Leather Labour Leather Labour Leather Cushion Labour Leather Cushion 18 0.4m 0.10m 0.4m Cushion 0.10m AUGUST 0.4m 0.4m 0.10m 0.4m 0.10m 19 Cushion 0.10m SEPTEMBER 280 JULY OCTOBER QUARTER 865 20 Budgeted sales in units 195 230 160 21 Beginning Inventory 0 0 0 92 112 28 64 16 22 23 2,530.00 $ Cash Sales $ 14.430.00 $ 2.145.00 $ 13.260.00 $ 17,020.00 $ 15.640.00 $ 20.720.00 $ 3,080.00 $ 19,040.00 $ 11,840.00 $ 1,760.00 $ 10,880.00 23 Closing Inventory 92 23 112 28 64 16 24 Direct Materials and Direct labour (a) The sneakers are made with special leather and specially treated rubber for the sole. The materials and labour required to make each pair of sneakers are as follows: Type of sneakers Leather $370 per meter 0.6m 0.4m Cushion $220 per meter 0.15m 0.10m Labour $340 per hour 15 minutes 12 minutes Girls Boys The company requires a closing inventory of 10% of raw material required for the following months material needed. There was no opening stock of raw material. The company plans to have a closing inventory of leather of 6.2m and 13m of cushioning material as at the 30th September. Materials are purchased from a company based in the Cayman Island. This supplier requiresthat 50% of the purchase total is paid for in cash with the order, and allows one month's credit for the remaining amount. (b) In keeping with government requirements, biodegradable cardboard boxes will be used to package the sneakers. Each box will cost $28.50 per box. The company will buy the packaging materials from a Jamaican company for cash each month. (c) To make girls' sneakers, each unit requires 15 minutes of direct labour hours and to make boys' sneakers each unit requires 12 minutes of direct labour hours. The company pays $340 per hour for each direct labour hour. Labour costs are paid in the month incurred