There is a continuing demand for three sub-assemblies, A, B and C made and sold by Chimseu Enterprises. Sales in each batch are in the ratio of 1:2:4 respectively and selling prices are K2,150; K2,500 and K3,000 respectively. Each sub-assembly consists of a copper frame onto which are fixed the same components but in differing quantities as follows: Sub-assembly Frame Component Component Component D E F A 1 5 1 4 B 1 1 7 5 C 1 3 5 1 Buying in costs per unit K200 K80 K50 K30 Operation times by labour for each sub-assembly are: Sub-assembly Skilled labour Unskilled labour A 2 2 B 1.5 2 C 1.5 3 The skilled labour is paid K60 per hour and the unskilled K45 per hour. The skilled labour is located in a machining department and the unskilled labour in the assembly department. A five-day week of 37.5 hours is worked and each accounting period is for four weeks. Variable overhead per sub-assembly is A K50, B K40 and C 35. At the end of the current year, stocks are expected to be as shown below but because interest rates have increased and the company utilizes a bank overdraft for working capital purposes, it is planned to effect a 10% reduction in all finished sub-assemblies and bought in stocks during Period 1 of the forthcoming year. Forecasts at current year end: Sub-assembly A 300 B 700 C 1,600 Copper frames 1,000 Component D 4,000 Component E 10,000 Component F 4,000 Overhead for the forthcoming year is budgeted to be, production K7,280,000, selling and distribution K3,640,000, and administration K3,380,000. These costs are all fixed and are expected to be incurred evenly throughout the year and are treated as period costs. Within period 1, it is planned to sell one thirteenth of the annual requirements which are to be the sales necessary to achieve the company profit target of K65 million before tax.REQUIRED Prepare the following budgets for period 1 for the forthcoming year: a) Sales budget, in quantities and value b) Production budget, in quantities only c) Materials usage budget in quantities d) Materials purchases budget, in quantities and value e) Man power (labour) budget, showing the number of people needed in each of the machining and assembly department