The budgeting process is one of the important tasks to every manager. It serves as a guideline on how resources should be utilized. Generally, a budget does not only provide a direction for a business, but it also helps management to align costs to business objectives. Company A manufactures product Alpha using two types of materials, namely: Materials X and Y. Due to prevailing economic headwinds in the country, the company has resorted to vigorous cost cutting measures. For such a reason, a strict prudent policy has been put in place. In order to ensure customer satisfaction, the company is busy planning for its January 2020 production needs. According to the company's records, November and December sales amount to 210 and 280 units, respectively. It takes two hours to manufacture a unit an hourly rate of N$12. The relevant data in respect of producing product Alpha are provided below: Additional information