Kaizen Furniture has the following information in respect to coffee tables for 2011:

Production specifications:

Beginning inventory Target Ending Inventory

Direct Materials:

Particle board 20,000 b.f. 18,000 b.f.

Red oak 25,000 b.f. 22,000 b.f.

Finished goods

Coffee tables 5,000 units 3,000 units

Revenue expected for 2011 are:

Selling price $392 per table

Units sold 52,000 coffee tables

Each coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of red oak.

Costs expected for 2011 include:

2010 2011

Particle board (per b.f.) $ 3.90 $ 4.00

Red oak (per b.f.) $ 5.80 $ 6.00

Laminating labor (per hour) $24.00 $25.00

Machining labor (per hour) $29.00 $30.00

Prepare the following budgets for 2011:

a. Revenues Budget--- (5 marks)

b. Production Budget (in units)---(5 marks)

c. Direct Materials Usage Budget---(15 marks)