ILLUSTRATION 38 A middle sized company requires you to compute and prepare the master budget for the next year from the following information: Sales: Product X $22,50,000 and Product Y $37,05,000 Direct Materials: Direct Wages Factory Overheads: Works Manager : Foreman : Stores and Spares Depreciation on Machinery: Light and Power : Repairs and Maintenance : Misc. Expenses : Office, selling and Distribution overhead 45% of Sales 5 Workers @ 7,500 per month Indirect Labour $52,500 per month $37,500 per month 0.5% on Sales 1,50,000 52,500 67,500 10% of direct wages $3,75,000 p.a