3.1. The budgeted and actual results of Crown Oil Co, a downstream oil and gas company in Midtown, for September 20X0 were as follows. The company uses a marginal costing system. There were no opening or closing stocks. Fixed budget Actual Sales and production 1000 Million Litres 700 Million Litres AED' million AED' million AED' million AED' million Sales 30,000 21,200 cost of sales Manpower 9,000 9,200 Catalyst 2,000 1,900 Power and fuel 2,000 1,500 G&A 1,000 1,200 Repairs and maintenance 3,000 2,400 Feedstock 12.000 9,200 Profit/(loss) 1,000 (4,200) Required: Prepare a budget that will be useful for management control purposes. 3.2. Turbo Oil Co. which is the subsidiary of Crown Oil operates a refinery and produce two products, Refined Oil and Petrochemicals, and is preparing its budget for 20X1. The company currently holds 800 Million litres of Refined Oil and 1.200 MT of Petrochemicals in inventory, but 250MT of Petrochemicals have just been discovered to have deteriorated in quality and must therefore be scrapped. Budgeted sales of Refined Oil are 3,000 Million Litres and of Petrochemicals are 4,000 MT, provided that the company maintains finished goods inventories at a level equal to three months' sales. Required: Prepare the production budget for 20x1