Micro Products Inc. has developed a very powerful electronic calculator. Each calculator requires three small chips that cost $3 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for year 2 and for the first quarter of year 3, as shown below: Year 2 Year 3 First Second Third Fourth First Budgeted production, in calculators 70,000 100,000 160,000 110,000 90,000 The chip used in production of the calculator is sometimes hard to get so it is necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of chips at the end of a quarter must be equal to 10% of the following quarter's production needs. A total of 46,000 chips will be on hand to start the first quarter of year 2. Required: Prepare a direct materials purchases budget for chips, by quarter and in total, for year 2. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total. Micro Products, Inc. Direct Materials Budget - Year 2 Quarter Second Third First Fourth Year Required production in calculators Number of chips per calculator Production needs-chips Total needs Required purchases-chips Total cost of purchases 2. Prepare the company's direct labour budget for the next fiscal year, assuming that the direct labour workforce is not adjusted each quarter. Instead, assume that the company's direct labour workforce consists of permanent employees who are guaranteed to be paid for at least 4.100 hours of work each quarter. If the number of required direct labour-hours is less than this number, the workers are paid for 4,100 hours anyway. Any hours worked in excess of 4,100 hours in a quarter are paid at a rate of 1.5 times the normal hourly rate for direct labour. (Do not leave any empty spaces; input a 0 wherever it is required.) Davison Enterprises Direct Labour Budget First Quarter Second Quarter Third Quarter Fourth Quarter Year Total direct labour hours needed Regular hours pald Overtime hours paid Wages for regular hours Overtime wages Total direct labour cost