Question 3. (20 marks) Budget preparation The management accountant at Lynton Ltd has been asked to prepare the company's annual budgets for the coming you. The company manufactures and sells two products (AB1 and XY2) and the following preliminary information has been collected Sales budget Product AB1 Product XY2 Anticipated volume in units Unit selling price 450,000 200,000 $20 $25 Production budget Desired onding finished goods units 25,000 15,000 Beginning finished goods units 30,000 10,000 Direct materials budget Direct materials per unit Desirod ending direct materials Boginning direct materials Cost per kg Direct labour budget Direct labour limo por unid Owoct labour rate por hour Total unit cost Budgeted income statement 2kg 3 KO 30,000 kg 15,000 kg 40,000 kg 10,000 kg $3 $4 04 hours 06 hours $10 $10 $121 $20 An assistant has prepared the selling and administrative expense budget, which reveals I Selling expenses Administrative expenses Product Product AB1 $660,000 XY2 $360,000 $540,000 $340,000 income taxes are expected to be 30 per cent of company's net proht (net income)