NBH manufactures two products: X and Y. The company predicts a sales volume of 10,000 units for product X and ending finished-goods inventory of 2,000 units. These numbers for product Y are 12,000 and 3,000, respectively. NBH currently has 7,000 units of X in inventory and 9,000 units of Y. The following raw materials are required to manufacture these products:

Raw Material Cost per RM Required for Product

X Y

A 4.00 2KG

B 4.50 1KG 1 KG

C 2.25 3KG

Product X requires 3 hours of cutting time and 2 hours of finishing time; Y requires 1 hour and 3 hours, respectively. The direct labor rate for cutting is RM20 per hour and RM28 per hour for finishing.

Prepare a production budget in units. (5 marks)

(b) Prepare a materials usage budget in kg and ringgit. (10 marks)

(c) Prepare a direct labor budget in hours and ringgit for product X. (5 marks

QUESTION FROM MANAGEMENT ACCOUNTING.