Question one Razr-Tech Manufacturing Ltd produces specialised computer parts for computer manufacturers around the world. Apart from the central processing unit (CPU), graphics processing unit (GPU), motherboard and Random Access Memory (RAM), Razr also produces small microprocessors. Two of its microprocessors are the Snapdragon and Exynos. The Snapdragon is sold at $300 per unit while the Exynos is sold at $440 per unit. In 2023, demand for the Snapdragon is expected to be 24,000 units while demand for Exynos is expected to be 6,000 units. Estimated beginning inventory in 2023 for Snapdragon and Exynos are expected to be 600 and 300 units respectively, while the company desires to have ending inventory of 500 and 200 units respectively for Snapdragon and Exynos. Additional information for the production of Snapdragon and Exynos follows: Finished Components Snapdragon Exynos Requirements for each finished product: 37 10 grams 8 grams APQ8064 0 4 grams mm855 Plus 4 grams 2 grams Direct labour 2 hours 3 hours Direct Materials Information xe37 APQ8064 mm855+ Cost per gram $2.00 $2.50 $1.50 Estimated beginning inventory in grams 6,000 1,500 2,000 Desired ending inventory in grams 5,000 1,000 2,500 Razr-Tech expects the average wage rate to be $36 per hour in 2023. Razr-Tech uses direct-labour hours to apply overhead. Each year the company determines the overhead application rate for the year based on the budgeted output for the year. The company maintain negligible work-in-progress inventory and expects the cost per unit for both the beginning and ending inventory of finished goods to be identical. Question one (continued) Factory Overhead Information $10,000 $5,000 Indirect materials-variable Miscellaneous supplies and tools-variable Indirect labour-variable Supervision-fixed Payroll taxes and fringe benefits-variable Maintenance costs-fixed Maintenance costs-variable Depreciation-fixed Heat, light, and power-fixed Heat, light, and power-variable Total Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office Total $40,000 $120,000 $250,000 $20,000 $10,080 $71,330 $43,420 $11,000 $580,830 Selling and Administrative Expense Information $60,000 Razr-Tech Manufacturing Ltd is subject to 30% income tax. $200,000 $60,000 $5,000 $60,000 $250,000 $4,000 $6,000 $645,000 REQUIRED: a. Using EXCEL, prepare the following schedules or statements for 2023: i. Sales budget Production budget Direct materials purchases budget ii. iii. iv. Direct labour budget V. vi. vii. viii. Factory overhead budget (Hint: separate variable and fixed) Cost of good sold and ending inventory budget Selling and administrative expense budget (Hint: Separate selling and administrative expense) Budgeted income statement.