QUESTION 3 (CLO 3) M&M manufactures one product, namely M1. The following information applies to the budget preparation for the year ending 31 December 2017. The sales forecast for product M1 is 25,000 units selling at a price of RM115 each. All the sales are expected to be on credit. In order to produce one unit of M1, the following materials are required: Material X 7 units at RM5 per unit 3 units at RM9 per unit Material Y There are two departments involved in producing MI, namely Machining Department and Assembly Department. For each unit of M1, the machine hours required are 2 hours at RM8 per machine hour, for assembly, 1 direct labour hour is needed at RM10 per labour hour. The following stocks are expected as on 1 January 2017: Product M1 2.800 units RM56.000 Material X 6,000 units RM15,000 Material Y 10,000 units RM30,000 There is an increase of 15% in both finished goods and raw materials as at 31 December 2017. REQUIRED TO PREPARE: a) Sales Budget (2 marks) b) Production Budget (4 marks) c) Direct Materials Usage Budget for Material X and Material Y (2 marks) d) Direct Materials Purchases Budget for Material X and Material Y (6 marks) e) Direct Labour Budget for Machining Department and Assembly Department (6 marks)