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QUESTION 4 PJ Ltd is in an industry which is recovering from the 2008 recession. The company manufactures two products, Aye and Bee. Standard cost
QUESTION 4 PJ Ltd is in an industry which is recovering from the 2008 recession. The company manufactures two products, Aye and Bee. Standard cost data for the products for next year are as follows: Product Aye per unit Product Bee per unit Direct materials: X at K2 per kg Y at K5 per kg Z at K6 per kg 24 kg 10 kg 5 kg 30 kg 8 kg 10 kg Product Aye per unit Product Bee per unit Direct wages: Unskilled at K3 per hour Skilled at K5 per hour 10 hours 6 hours 5 hours 5 hours Budgeted stocks for next year are as follows: Product Aye per unit 400 500 1 January 31 December Product Bee per unit 800 1,100 Material X Material Y Material Z kg kg kg 1 January 31 December 30,000 35,000 25,000 27,000 12,000 12,500 Budgeted sales for next year: Product Aye 2,400 units; Product Bee 3,200 units. You are required to prepare the following budgets for next year: 2700 2300 (a) Production budget, in units (6) Material purchases budget, in kg and K (c) Direct labour budget, in hours and K-9,15 (8 Marks) (8 Marks) (9 Marks) 5 N41 Pa
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