Question 2 Part A The ABC company manufactures beds that sell for $550. Budgeted sales for May, June and July 2020 are 3000 units , 4200 units and 3500 respectively. Each bed requires 25 square feet of cedar wood at a cost of $10 per sq foot. The company wants to maintain an inventory of bookcases equal to 15% of the following month sales. Inventory on May 1 consisted of 150 bookcases The company wants to maintain an inventory of oak equal to 35% of the next month's requirements. Materials inventory on May 1 consisted of 400 sq feet of cedar. The company estimates an inventory of oak on hand at the end of June of approximately 550 sq feet. Monthly fixed overhead and variable cost based on direct labor hour are provided on the table below: Supervisor's $7500 salaries Direct labor hours for each bed 10 hours Cost per labor $13.50 hour Insurance $ 1500 Depreciation of $1200 equipment [Office] Depreciation of $ 6500 factory Predetermined rate based on DHL $6.00 Required 1. Calculate sales budget in $ for each month and total the number of beds sold in May and June 2. Prepare a production budgets in units for each month and in total for May and June 3. Prepare purchases budget in $ for Direct materials for each month and in total for first two months 4. Prepare a direct labour budget for each month and total of the first 2 months 5. Prepare a manufacturing overhead budget for each month and the total for the first two months All questions are based on only two months [May and June]