Problem 4 From the following information relating to 2012 and conditions expected to prevail in 2013 prepare a budget for 2013 2012 Actuals: $ Sales 1,00,000 (40,000 units) 53,000 Raw materials Wages 11,000 Variable overheads 16,000 Fixed overheads 10,000 2013 Prospects: Sales 1,50,000(60,000) units Raw material Wages 5% price increase 10% increase in wage rate Wages 5% increase in productivity One lathe $28,000 Additional plant One drill $9,000 Rate of depreciation is 10%