QUESTION 3 Answer all parts. Gutter Ltd. was incorporated seven years ago to manufacture gutters for the construction industry. The company is currently preparing its budget for the next four months, June, July, August and September 2023, the details of which are presented below. - The gutters are manufactured in a simple production process by molding plastic and aluminium together. The company expects to sell the gutters for 80 each in June, and expects the sales price will increase by 5% per month thereafter. It expects to sell 4,000 gutters in June, rising by 1,000 gutters per month after that. - Gutter Ltd. expects to hold 500 gutters in inventory at the start of June, and budgets to have sufficient gutters in inventory at the end of each month, to satisfy 25% of the following months budgeted sales. - The company uses variable costing to value production, and the costs incurred to produce one prg are as follows: Guter - It is expected that administration costs will be 5,000 per month. Further, Gutter Ltd. Employs one sales person and her cost is expected to be 2% of budgeted sales revenue per month. Required: (a) For June, July, August and September 2023, prepare: (i) The sales budget (in gutters and ). (ii) The production budget (gutters). (iii) The materials purchases budget for each material (in kg and ). (iv) The labour cost budget (in hours and ). (v) The variable overhead cost budget (in hours and ). (vi) The selling and administration cost budget. Prepare a budgeted Income Statement for the four months June, July, August and September 2023. Outline your understanding of the relationship between the above departments and how conflict and dissatisfaction may arise in the budget setting process in each of the departments in Gutter Itd