QUESTION 2 Beats Hawk Co. manufactures and sells skateboards. The company manufactures a single model PrimeX, which sells at RM185 per unit. The management accountant gathered the following information to prepare budgets for the fourth quarter of 2019: Sales projections of the upcoming months show the estimated units sales of PrimeX to be as follows: 2020 Budgeted sales units. October 1,100 2019 November December 1,250 1,400 January February 1,400 1,350 It is the policy of the company to end each month with enough finished-goods inventories to cover 20% of the following month's sales. There were 220 units of PrimeX on hand at the end of September, 2019. PrimeX is made of hard maple wood from North American forests. Eight board feet of hard maple wood are used to produce a unit of PrimeX. The company keeps 10% of the hard maple wood required for next month's production on hand at the end of each month. The hard maple wood costs RMS per board feet. The inventory report was misplaced and the management accountant had to calculate the opening balance of hard maple wood for October. Currently, there are 30 direct labours involved in PrimeX's production. They work for a total of 1,350 hours per week and get paid an average of RM9 per hour. For every extra hour worked in excess of 1,350 hours per week, the company will pay RM14 per hour. Four hours of direct labour is normally spent to complete one unit of PrimeX. In addition, the variable manufacturing overhead rate is RM2.50 per direct labour hour. The fixed manufacturing overhead is RM86,000 per quarter. The only noncash element in manufacturing overhead is depreciation, which is RM26,000 per quarter. Required: 1. Prepare the following budgets for the months of October, November and December 2019, and for the quarter: a Sales budget b. Production budget c. Direct material purchases budget (in RM) d. Direct labour budget (in RM) e. Manufacturing overhead budget (18 marks)