The production department of Headstrong Company has submitted the following forecast of units to be produced by quarter for the

upcoming fiscal year:

$1$st Quarter

$2$nd Quarter

$3$rd Quarter

$4$th Quarter

Units to be produced

$7,000$

$8,000$

$6,000$

$5\mathrm{.}000$

In addition, the beginning raw materials inventory for the first quarter is budgeted to be $1,400$ kilograms and the beginning accounts

payable for the first quarter are budgeted to be $$2,940.$

Each unit requires two kilograms of raw material that costs $$1\mathrm{.}40$ per kilogram. Management desires to end each quarter with an inventory

of raw materials equal to $10\%$ of the following quarter's production needs. The desired ending inventory for the fourth quarter is $1,500$

kilograms. Management plans to pay for $80\%$ of raw material purchases in the quarter acquired and $20\%$ in the following quarter. Each unit

requires $0\mathrm{.}60$ direct labour$-$hours, and direct labour$-$hour workers are paid $$14$ per hour.

Required:

$1.$ Prepare the company's direct materials budget and schedule of expected cash disbursements for materials for the upcoming fiscal year.

$2.$ Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each

quarter to match the number of hours required to produce the forecasted number