PROBLEM 3 - OPERATING BUDGET (25%) Herma Ltd. produces specialized professional camera bag. The main materials for the bag are canvas and leather. The company is preparing detailed budget for April 2022 and has assembled the following information to assists in the budget preparation: Selling price $ 1,500 Estimated sales quantity March 40,000 April 40,000 May 45,000 June 58,000 Direct Materials (Leather): Standard material per bag 0.8 m of leather Material price $ 1,090 per m of leather Direct Labour: Standard labour per bag 7 hours Direct labour cost per hour $ 25 Manufacturing Overhead: Purchasing and material handling $ 48 per m of leather purchased General production overhead $ 8 per direct labour hour Non Manufacturing Expenses Variable Marketing Expenses $ 45 per unit sold Fixed Marketing Expenses $ 1,780,000 General and Administration $ 2,918,000 ExpenseFollowing are the policy related to the operation: a. The company maintains finished goods inventory equal to 12% of the following month's sales. b. The company requires that the ending inventory of direct materials be equal to 15% of the following month's production needs. In March 2022, Herma Ltd. identified that the cost per unit of production is $1,025. Required: Prepare the following budget for April 2022: 1. Revenue budget (in dollar) (2%) 2. Production budget (in units) (2%) 3. Direct material usage budget (in quantities and in dollar) (2%) 4. Direct material purchase budget (in quantities and in dollar) (4%) 5. Direct labour budget (in dollar) (2%) 6. Manufacturing overhead budget (in dollar) (2%) 7. Budgeted Unit Cost of Ending Finished Good Inventory (4%) 8. Ending Inventory Budget (2%) 9. COGS Budget (2%) 10. Income Statement Budget (3%)