Jamdown & Associates Ltd produces two products, Glam120 and Glam220. The following table provides information on budgeted production for 2018:

Production Forecast

Product	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Total
Glam120	5,000	6,000	4,800	5,500	21,300
Glam220	6,500	4,600	5,400	6,200	22,700

Notes:

It is the companys policy to have stock on hand at the end of each quarter equaling to 10% of production for the next quarter.

Budgeted production for the first quarter of 2019 were: Glam120, 7,000 units and Glam220, 5,800 units.

During 2018, the company plans to sell one unit of Glam120 for $600 and one unit of Glam220 for $700.

Management has forecasted that variable overhead cost per unit for Glam120 and Glam200 would be $100 and $120 respectively during 2018, while fixed overheads for the same period were estimated to be $2,400,000 and would be incurred in equal amounts quarterly.

Required:

Calculate the number of units to be sold for both products during each quarter of 2018. (10 marks)

Prepare the sales budget for 2018. (5 marks)

Prepare the overhead cost budget for the four quarters in 2018. (5 marks)

Explain what is meant by a limiting budget factor. (2 marks)

Describe two limiting factors that could influence the achievement of Jamdown & Associates profit objectives for 2018. (3 marks)