Protectoro Ltd manufactures face masks for the medical industry. Two types of masks are manufactured: alightweight mask used by the public as well as a heavy-duty N95 mask used by healthcare workers. Demand for face masks increased drastically in a very short period due to the coronavirus. Protectoro sold 200 000 masks in February of which 30% are N95 masks. Protectoro is aiming to sell 20 times more for each mask during March. Lightweight masks are sold for R50 per pack of 5 masks and N95 is sold for R720 per pack of 20 masks. Quality isof utmost importance during the manufacturing process.

Melt-blow fabric is used for the mask itself. It is possible to make 16 masks from 2 meters of fabric. Lightweightmelt-blown fabric is purchased at R12 per meter and heavy-duty melt-blown fabric at R34 per meter. Each mask requires a metal strip to shape over the nose of the user, 15cm of metal strip is needed for one mask. Metal strips are purchased pre-cut at the cost of R2 per strip. An ear-loop string is attached on each side of the mask. Eachstring needs to be 20cm long. A string is purchased per meter at the cost of R3.

 

	Opening balance	Closing balance
Lightweight masks	21 000	15% of new sales volume
N95 masks	9 000	15% of new sales volume
Lightweight fabric (meters)	3 000	60 000
Heavy-duty fabric (meters)	1 286	25 714
Metal stips (strips)	6 000	120 000
String (meters)	100 000	2 000 000

 

Labourers work 8 hours a day, six days a week at a rate of R45 per hour. It takes 6 minutes to manufacture amask. Assume four weeks per month.

Highly complex machines are used to manufacture the masks at a rate of R35 per hour. One machine can producefive masks in an hour.

Fixed manufacturing overhead cost amounts to R5 000 000 per month.

REQUIRED:

 

Prepare the following budgets for March:
3.1	Sales budget
3.2	Production budget
3.3	Material purchases budget
3.4	Labour budget
3.5	Manufacturing overheads budget