Question 2 MC Packaging Limited (MC") makes aluminum cans for the food processing industry. It produces the cans in three different sizes according to capacity: small, medium and large. The following details are taken from next quarter's budget: Large 4,000 Sales quantity Medium 5,000 Small 3,500 Direct labour: Fitters and turners (hours/unit) Assemblers and packers (hours/unit) 1.25 0.40 0.90 0.25 0.80 0.20 Direct materials Aluminum strips per unit Packaging materials (metres) 2.50 1.25 1.00 0.75 0.50 0.50 Finished stocks (units) Opening Closing 300 400 400 300 200 150 Rates of pay for fitters/turners and assemblers/packers are $10.00 per hour and $6.00 per hour respectively. Aluminum strips cost $3.00 each and packaging is $1.00 per metre. MC plans to have opening material stocks of 220 aluminum strips and 80 metres of packaging. The closing material stocks are 150 aluminum strips and 50 metres of packaging. The quarter's fixed production overheads of $31,700 are attached to product lines on a direct labour hour basis. Required: a. Prepare the production budget schedule for the quarter. b. Calculate the unit production cost of each type of can. c. Prepare the material usage budget schedule in quantities and value. d. Prepare the materials purchases budget schedule in quantities and value. e. Prepare the direct labour budget schedule in hours and value. (3 marks) (15 marks) (4 marks) (4 marks) (4 marks)