QUESTION 4 1 PART A Gagah Bhd. manufactures one product. The budgeted sales for May 2021 are for 10,000 units at a selling price of RM100 per unit. Other details are as follows: 1) Two components are used in the manufacture of each unit: Component Number Unit cost of each component (RM) XY 5 WZ 3 0.50 11) Inventories at the beginning of May 2021 are expected to be as follows: 4.000 units of finished goods at a unit cost of RM52.50. Component XY: 16.000 units at a unit cost of RM1. Component WZ: 9.600 units at a unit cost of RM0.50. ii) Two grades of employees are used in the manufacture of each unit: Employee Hours per unit Labour rate per hour (RM) Production 4 Finishing 2 7 iv) Factory overhead is absorbed into unit costs on the basis of direct labour hours. The budgeted factory overhead for May 2021 is estimated to be RM96,000. v) The administration, selling and distribution overhead for May 2021 has been budgeted at RM275,000 vi) The company plans a reduction of 50% in the quantity of finished goods inventory, and an increase of 25% in the quantity of each component at the end of May 2021. Required: Prepare the following budgets for May 2021: a) Sales budget (2 marks) b) Production budget (2 marks) c) Direct materials budget (3 marks) d) Direct labour budget (2 marks)