Meranti Limited manufactures and sells chairs and made the following forecasts for the financial

year ending $31$ December $2024$ for the three provinces in which it operates:

Sales forecasts:

Product Selling Price Gauteng Mpumalanga Limpopo

per unit Unit Units Units

Adinorac chair Model A$320$ R$800300025003200$

Wishbone chair Model W$100$ R$950120016001500$

Materials quantity requirements and unit costs: Wood Fabric

Adinorac chair $4$ metres $2$ metres

Wishbone chair $6$ metres $3$ metres

Material cost per metre R$70$ R$40$

Labour requirements and hourly rates Cutting department Assembly department

Adinorac chair $4$ hours $2$ hours

Wishbone chair $2$ hours $1$ hour

Hourly rate R$60$ R$50$

Budgeted manufacturing overheads

Cutting department hour R$120000$ per year $+$ R$15$ per labour

Assembly department hour R$80000$ per year $+$ R$12$ per labour

Inventories of materials Wood Fabric

Opening inventory $4000$ metres $3000$ metres

Closing inventory $5000$ metres $2500$ metres

Inventories of finished goods

Opening inventory Closing inventory

units units

Adinorac chairs $11001000$

Wishbone chairs $900500$

REQUIRED

You are the financial accountant at the company and the Chief Financial Officer has asked you to

prepare the

following to be tabled at the finance budgetary committee:

Using the information provided above, compile the following for Meranti Limited:

$1\mathrm{.}1$ Sales budget indicating total sales per province, per product and overall total.

$1\mathrm{.}2$ Production budget $($in units$)$

$1\mathrm{.}3$ Direct materials purchases budget

$1\mathrm{.}4$ Direct labour budget

$1\mathrm{.}5$ Manufacturing overheads budget indicating the manufacturing overheads per department