Question 8 The following May 2022 data and estimates are available for Fufu Ltd: Item Sales revenue (note 2) Overheads (note 4) May () 44,100 5,000 Salaries (note 5) 21,330 Direct Material (note 3) May () Closing Stock 6,000 Material Usage 20,000 5,250 Opening Stock Additional Notes: 1. The opening cash balance is 40,000. 2. 15% of sales are for cash, the balance is received the following month. The amount received in May relating to April's sales was 7,500 3. 20% of purchases of direct materials are paid for in the month, the balance being paid the following month. In May, 20,000 will be paid for purchases relating to April. 4. Overheads include 800 per month for depreciation. Overheads are paid in the following month. In May, the company will pay 4,500 for overheads. 5. Salaries are paid in the month they are incurred. 6. A tax bill of 2,000 is to be paid in May. Required: (a) Calculate the amount paid for direct materials purchases in May 2022. (b) Prepare the cash budget for May 2022. (c) Outline one benefit of budgeting. (4 marks (5 marks (1 marl (Total marks for question 8: 10 mark