Spaworks Inc. makes hot tubs for residential use. The hot tubs, which consist of a fibreglass finish and proprietary insulation glass, are sold with an all-weather pump and heater unit for $2,750. The company is planning its annual budget for the coming year ending October 31, 2020, and the controller has provided the following data: Sales F2020 15,000 tubs F2021 November sales: 1,800 tubs; December sales: 1,500 tubs Selling price per tub: $2,750.00 Materials and labour requirements (per tub) Direct materials Insulation 5.0 kg Fibreglass 10.4 sq. metre (m2) Pumps 1 unit Direct labour 8 hours Inventories Beginning: Qty Units Cost Finished goods 550 unit $1,400.00 Direct materials Insulation 2,195 kg $15.00 Fibreglass 6,500 m2 $12.00 Pumps 550 unit $850.00 Ending finished goods inventory is 25% of next months sales. Ending direct materials inventories are 20% of next months production needs. Direct materials inventory is expected to change to the following: Insulation $ 16.00 per kg Fibreglass $ 13.00 per square metre Pumps $900.00 per unit Other rates Direct labour wage rate $22.50 per hour Variable manufacturing overhead $26.00 per direct labour hour Variable marketing costs $250 per customer Number of customers 15,000 Other costs Fixed manufacturing overhead $319,275 Fixed non-manufacturing costs $1,250,000

Required: Prepare the following schedules of the master budget for the year ended October 31, 2020. Assume that the company uses first in, first out (FIFO) for inventory costs: a) Revenue budget b) Production budget c) Direct materials usage budget d) Direct materials purchases budget e) Direct manufacturing labour budget f) Manufacturing overhead budget g) Computation of unit costs of finished goods inventory h) Budgeted ending inventory i) Budgeted schedule of cost of goods sold j) Budgeted income statement k) A good budget must start with credible data. Both internal and external factors can affect the quality of the data used to develop a budget. i. Identify two external factors that should be considered when developing this budget. ii. Explain how Spaworks management team could control the risk of using unreliable data in its operating budgets. Instructions: 1. Please complete a (1) MAXIMUM 10 slide (no less than 8 slides) power- point presentation answering the above four questions plus attach an (2) excel file with all your supporting calculations