PokuPharma Company Limited manufactures two products known as A and B. Product A is produced in department 1 and B in department 2. The following information is available for 2010. Standard material and labour costs: GH Material X 1.80 per unit Material y 4.00 per unit Direct labour 3.00 per hour Overhead is recovered on a direct hour basis. The standard material and labour usage for each product is as follows: A B Material X 10 units 8 units Material Y 5 units 9 units Direct labour 10 hours 15 hours The Statement of Financial Position (SOFP) for the previous year ended 2009 was as follows: GH GH GH Property, plant and equipment: Land 42,500 Building and equipment 323,000 Less depreciation 63.750 259,250 301,750 Current Assets: Inventory: Finished goods 24,769 Raw materials 47,300 Receivables 72,250 Cash and Bank 8.500 152,819 Less current liabilities: Creditors 62.200 90,619 Net Assets 392.369 Financed by: 300,000 ordinary shares of GHl each 300,000 Add reserves 92.369 392,369 Other relevant data is as follows for the year 2010: Finished Products A B Forecast sales (units) 8,500 1,600 Selling price per unit (GH) 100 140 Closing inventory required (units) 1,870 90 Opening inventory (units) 170 85 Direct Material Material X 8,500 10,200 Opening inventory (units) Closing inventory required (units) Material Y 8,000 1,700 Department 1 GHC Department 2 GHC Budgeted variable overhead rates (per direct labour hour) Indirect materials Indirect labour Power (variable portion) Maintenance (variable portion) 0.30 0.30 0.15 0.05 0.20 0.30 0.10 0.10 Budgeted fixed overheads Depreciation Supervision Power (fixed portion) Maintenance (fixed portion) Department 1 GH 25,000 25,000 10,000 11,400 Department 2 GH 20,000 10,000 500 799 Estimated non-manufacturing overheads Stationery etc (Administration) Salaries Office Commission Car expenses (sales) Advertising Sundry (office) GH 1,000 18,500 7,000 15,000 5,500 20,000 2,000 69,000 Budgeted cash flows are as follows: Q1 GH 250,000 Q2 GH 300,000 Q3 GH 280,000 Q4 GH 246,250 Receipts from customers Payments: Materials Wages and salaries Other expenses 100,000 100,000 30,000 120,000 110,000 25,000 110,000 120,000 18,004 136,996 161,547 3,409 Required: Prepare a Master Budget for the year ended 2010 and the following functional budgets; 1. Sales budget 2. Production budget 3. Direct materials usage budget 4. Direct materials purchase budget 5. Direct labour budget 6. Factory overhead budget 7. Selling and Administration budget