The Where Am I? Company makes two types of GPS devices, one for the motor

market and one for the marine market. Information regarding the two products, costs

and sales levels is as follows:

Marine Motor

Direct Materials

Electronics units 4.0 2.0

Displays 3.0 2.0

Direct Labour Hours Required

Skilled (Minutes) 45.0 51.0

Semi-Skilled (Minutes) 135.0 225.0

Sales Level (units) 2,400 3,000

Unit Sales Price 400 150

Opening Inventory (units) 100 50

The opening inventory of electronics units will be 1,040 units and the opening

inventory of displays will be 290 units. Material prices are budgeted to be 40 for

each electronic unit and 25 for display unit.

Labour rates are

Skilled per Hour 20

Semi-Skilled per Hour 14

Closing inventory of finished goods is planned to be one month's sales for the year.

The closing inventories of raw materials are planned to 10% of usage.

Required:

a) Prepare the following operating budgets:

(i) Sales

(ii) Production

(iii)Materials usage

(iv)Materials purchases

(v) Labour

b) Calculate the cost of one motor unit.

c) Calculate the cost of one marine unit.