Perplex Ltd operates at capacity and makes glass-topped dining tables and wooden chairs, which are then typically sold as sets of four chairs with one table. However, some customers purchase replacement or extra chairs, and others buy some chairs or a table only, so the sales mix is not exactly 4:1. Perplex Ltd is planning its annual budget for the financial year 2024. Information for 2024 is as follows: Input prices Direct materials Wood $5.50 per board metre Glass $14.5 per sheet Direct manufacturing labour $18 per direct manufacturing labourhour Input quantities per unit of output Chairs Tables Direct materials Wood 1.5 board metres 1.8 board metres Glass 2 sheets 4 Direct manufacturing labour 4 hours 7 hours Machine-hours (MH) 3 MH 7 MH Inventory information, direct materials Wood Glass Beginning inventory 26 100 board metres 8 900 sheets Target ending inventory 29 350 board metres 9 600 sheets Sales and inventory information, finished goods Chairs Tables Expected sales in units 175 000 55 000 Selling price $80 $950 Target ending inventory in units 8 500 2 150 Beginning inventory in units 7 600 2 050 Chairs are manufactured in batches of 500 and tables are manufactured in batches of 50. It takes four hours to set up for a batch of chairs and three hours to set up for a batch of tables. Perplex Ltd uses activity-based costing and has classified all overhead costs as shown in the table below: Cost type Budgeted variable Budgeted fixed Cost driver/allocation base Manufacturing: Materials handling $343 840 $650 000 Number of board metres used Set-up 98 000 305 740 Set-up hours Processing 789 350 5 980 000 Machine-hours Nonmanufacturing: 5 Marketing 2 052 200 4 560 000 Sales revenue Distribution 55 000 390 000 Number of deliveries Delivery trucks transport units sold in delivery sizes of 500 chairs or 500 tables. Required For the year 2024: 1. Prepare the revenues budget. (1 mark) 2. Use the revenues budget to: 1. find the budgeted allocation rate for marketing costs (1.5 marks) 2. find the budgeted number of deliveries and allocation rate for distribution costs. (3.5 marks) 3. Prepare the production budget in units. (2 marks) 4. Use the production budget to: 1. find the budgeted number of set-ups, set-up hours and the allocation rate for set-up costs (5 marks) 2. find the budgeted total machine-hours and the allocation rate for processing costs. (2.5 marks) 5. Prepare the direct materials usage budget and the direct materials purchases budget. (5 marks) 6. Use the direct materials usage budget to find the budgeted allocation rate for materials-handling costs. (2.5 marks) 7. need to make the direct manufacturing labour cost budget. (1.5 marks) 8. need to make the manufacturing overhead cost budget for materials handling, setup and processing. (1.5 marks) 9. need to make the budgeted unit cost of finished good (16.5 marks) and ending inventories budget. (4.5 marks) 10. need to make the cost of goods sold budget. (3 marks) 6 11. need to make the non-manufacturing overhead costs budget for marketing and distribution. (1 mark) 12. need to make a budgeted income statement (ignore income taxes). (3 marks)