Q3. The Enterprise Company manufactures two products, known as alpha and sigma. Alpha is produced in department 1 and sigma in department 2. The company is preparing the annual budget for the next financial year based on the following budgeted information: (10 marks) Material : 7.20 per unit Material Y: 16.00 per unit Direct labour. 12.00 per hour Overhead is recovered on a direct labour hour basis. The standard material and labour usage for each product is as follows: Model alpha Model sigma Material X 10 units 8 units Material Y 5 units 9 units Direct labour 10 hours 15 hours Other relevant budgeted data are as follows for the year: Finished product Model alpha Forecast sales (units) 8 500 Selling price per unit 400 Ending inventory required (units) 1870 Beginning inventory (units) 170 Model sigma 1 600 560 90 85 Direct material Material Material y Beginning inventory (units) 8500 8000 Ending inventory required (units) 10200 1700 a) Prepare the following budgets for both the products: 1 sales budget (2 marks) 2 production budget (2 marks) 3 direct materials usage budget (2 marks) b) What is the significance of budgeting in a big manufacturing company and what sort of budgets can be used for this purpose? (4 Marks)