Makers Ltd. Manufacturers sells two products, Abba and Baba. In December 2015 Makers budget department gathered the following information data in order to prepare for 2016.

2016 Projected sales:

Product Unit Price

Abba 60,000 $165

Baba 40,000 $250

2016 Inventories in Unit

Expected Target:

Product January 1, 2016 December 31, 2016

Abba 20,000 25,000

Baba 8,000 9,000

To produce 1 unit of Abba and Baba, the following direct materials are used:

Target Inventories

Direct Materials Purchase January 1, 2016 December 31, 2016

A $12 32,000 pounds 36,000 pounds

B $5 29,000 pounds 32,000 pounds

C $3 6,000 pounds 7,000 pounds

Project direct manufacturing labor requirements and rates for 2016are as follows:

Product Hours per Unit Rate Per Hour

Abba 2 $12

Baba 3 $16

Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor hours.

Required:

a) Prepare the following budget (in dollars)

b) Production budget (in units)

c) Direct material purchase budget (in quantity)

d) Direct materials purchases budget ( in dollars)

e) Direct manufacturing labor budget (in dollars)