QUESTION 3 Palazzo Industries manufactures specialty lines of men's clothes. The company manufactures three products from three combinations of fabrics. The budgeted data for year 2017 is as follows: Product BLACK SILVER BROWN Sales units 7500 5000 6000 Selling price per unit (RM) 110 108 40 Stock of finished products as at 1 January 2017 in units 1,500 1,000 1,250 Standard mixes in units : Fabric A 1.5 meter 1 meter Fabric B 0.5 meter 2 meter Fabric C 2 meter 3.5meter Raw Material Fabric A Fabric B Fabric C Stock of raw material as at 1 January 2017 in meter 2,200 1,100 1,020 Cost per meter (RM) 25 20 18 Labour is paid at the rate of RM8 per hours worked. The standard time to produce each unit of the three products is as follows: Black : 120 minutes Silver : 180 minutes Brown : 75 minutes The company plans to reduce the stocks at 31 December 2017 by 10% of raw materials and 20% of finished products. Required: a. Prepare the Sales and Production Budget for the year 2017. b. Prepare the Material Usage and Purchase Budget for the year 2017. C. Prepare the Direct Labour Budget for the year 2017. d. Briefly explain the importance of preparing cash budget for a company