This assignment is based on Budgets. The assignment consists of TWO parts Each part must be answered on a new page. Answers including calculations and tables to be submitted in a WORD document (in a PDF format) via the unit LMS site. Part A (40 marks) Mahopines Company is a company that makes two types of dining tables: Plain and Maple. There are two types of direct materials: Pine and Mahogany woods. Direct manufacturing labour workers are hired on an hourly basis; no overtime is worked. In terms of manufacturing overhead costs, there are two manufacturing overhead cost pools and two cost drivers. The two manufacturing overhead cost pools are manufacturing operations overhead and machine setup overhead. The cost drivers for manufacturing overhead are: direct manufacturing labour-hours for manufacturing operations overhead cost and setup labour-hours for machine setup overhead cost. Nonmanufacturing costs consist of product design, marketing, and distribution costs. The following data are available for the 2019 budget: Direct Materials Rate Pine $10 per meter square (m2) Mahogany $15 per meter square (m2) Direct Manufacturing labour rate $20 per hour Quantity of Material for Each Product Plain Table Maple Table Pine 12 m2 15 m2 Mahogany 7 m2 9 m2 Direct Material Labour 5 hours 10 hours Products Plain Table Maple Table Expected Sales for 2019 (in units) 52,000 18,000 Selling Price $ 720 $ 900 Target ending inventory in units 11,000 1,000 Beginning inventory in units 1,000 500 Beginning inventory in dollars $ 420,000 $ 315,000 Direct materials inventory Pine Mahogany Beginning inventory 80,000 m2 60,000 m2 Target ending inventory 90,000 m2 20,000 m2 Data on Manufacturing Overhead Cost Manufacturing Operations Overhead cost (capacity of 500,000 direct manufacturing labour-hours) Variable manufacturing operation overhead costs (per direct manufacturing labour-hours) Supplies Indirect manufacturing labour Power (support department costs) Maintenance (support department costs) Total variable manufacturing operation overhead cost $ 5.00 6.00 7.00 4.00 $ 22.00 Fixed manufacturing operation overhead cost Depreciation Supervision Power (support department costs) Maintenance (support department costs) Total fixed manufacturing operation overhead cost $ 1,200,000 400,000 750,000 425,000 $ 2,775,000 Machine Setup Overhead Costs (capacity of 20,000 setup labour-hours) Variable machine setup overhead cost (per setup labour-hours) Supplies Indirect manufacturing labour Power (support department) Total variable machine setup overhead cost $ 20 60 15 $ 95 Fixed machine setup overhead cost Depreciation Supervision Power (Support department cost) Total fixed machine setup overhead cost $ 515,000 1,100,000 23,000 $ 1,638,000 0.2 hour of setup labour-hour is allocated to make one unit of Plain table and 0.3 hour of setup labour-hour is allocated for Maple table. Non-manufacturing Cost Product Design Cost (fixed) $ 1,000,000 Marketing Cost Fixed marketing cost Variable marketing cost equals 5.5% of revenues $ 950,000 Distribution Cost Fixed distribution cost Variable distribution cost is $2 per cubic feet of table sold and shipped Plain table 15 cubic feet per table sold and shipped Maple table 20 cubic feet per table sold and shipped $ 1,500,000 Required: Based on the above information provided by the various department managers, prepare the following budgets: a. Sales/Revenue Budget (2 marks) b. Production Budget in unit (3 marks) c. Direct Material Usage Budget in quantity and dollars (use FIFO for material allocation) (6 points) d. Direct Material Purchases Budget in quantity and dollars (4 points) e. Direct Manufacturing Labour Cost budget (3 points) f. Manufacturing Overhead Cost Budget (6 points) g. Budgeted unit cost of ending finished goods inventory (4 points) h. Ending Inventory Budget (3 points) i. Cost of Goods Sold Budget (3 points) j. Non-manufacturing Cost Budget (3 points) k. Budgeted Income Statement. (3 points