is preparing its budgets for the first six month of 2009. It manufactures raw materials in its Question4 and sells one product, Product Z, which uses two different selling price of Product Z is $25o per unit. It is planned to increase this to compensate for an expected increase of 10% and a 6%rise in direct labour costs. These cost The current price by $25 per unit from 1 May 2009 in the cost of both raw material increases are due to take effect from 1 April 2009. Sales units in 2009 are expected to be: January 500 May 500 550 June 580 March 630 July 620 April650 e following current usage and cost information per unit of Product Z is available Material A Material B Skilled direct labour Unskilled direct labour 5 kg $4/kg 7 kg@ $6/kg S hours @$7.50/hour 3 hours @54.80/hour Variable production overhead $3.50 per direct labour hour Fixed roduction overhead $240,000 per From February 2009, Brownie Ltd plans to hold closing stock of Product Z equal to 20% of the next month's sales. Raw materials will be purchased two weeks before they are required for production. Assume each month consists of exactly four weeks. Opening stocks on 1 February 2009 are expected to be: Product Z 110 units Material A 1,415k Material B 1,981 k You are required to produce the following budgets, showing for each month of February. March, April and May 2009: a) Sales budgets(S) b) Production budgets(units) c) Material purchases budgets for Material A and Material B respectively (kg and S). 12 marks] [4 marks] 8 marks] 6 marks Labour budgets (hours and $) for each of skilled and unskilled