Power Inc. manufactures and sells specialised power generators, Energon. The following are the budgeted sales and production units of Energon, for the months of Dec 2004 to Mar 2005 : Energon Sales Production (units) (units) Dec 8,000 7,500 Jan 10,000 9,000 Feb 8,500 8,000 Mar 8,000 7,000 Each unit of Energon requires 3 components of Particle-E. Particle-E costs $3.50 per component. Power pays its supplier 50% in the month of purchase and the remainder, one (1) month following the purchase. Power normally keeps the ending raw material inventory at 40% of the following month's direct material usage requirement. Power also incurs the following manufacturing overhead : Utilities $1.20 per unit produced Depreciation - Plant Equipment $118,800 per annum Plant manager's salary $7,500 per month Manufacturing overheads are paid in the month incurred. Required : (a) Prepare the direct materials budget (including payments to suppliers) for the months of Jan and Feb 2005. (b) Prepare the manufacturing overhead budget (including payments for these expenses) for the months of Jan and Feb 2005