Veloso Ltd is a manufacturer of the EXPERT Desk using the latest ergonomic technology. You are preparing their manufacturing related budgets and have been provided with the following information below:

Information from the sales manager finds that EXPERT Desk sales in quarter 4 are expected to increase by 25% leading up to the end of financial year where past experience has shown that many businesses will want to ensure that they have used up their budget allocation for the year.

Each EXPERT Desk sells for $310 but the selling price is expected to increase to $350 in quarter 3 and a further 10% in quarter 4 to allow for anticipated increases in labour and material costs.

Jing is the production manager and is concerned that inventory on hand of the finished desks at the end of each quarter is lower than it should be. Hence, Jing has asked that 10 desks be added to inventory on hand at the end of each quarter for the 2023/2024 year to help build up ending inventory of finished desks to ease Jings concerns.

Each EXPERT Desk requires 1.8 hours of direct labour but this is expected to increase to 2.25 hours for quarter 4 with updated technical specifications expected to be implemented in this quarter.

The cost of direct labour per hour is $38 however in Q4, employees producing the EXPERT Desk will be receiving a $2 per hour pay increase.

The cost of direct materials is expected to be 14% higher in quarter 3 as some of the materials are becoming harder to source.

The volume of expected sales of the EXPERT Desk are as follows:

Quarter 1 (Jul 2023 to Sept 2023) = 2,400

Quarter 2 (Oct 2023 to Dec 2023) = 2,500

Quarter 3 (Jan 2024 to Mar 2024) = 2,600

Inventory at beginning of Quarter 1 (Jul 2023 to Sept 2023) of EXPERT Desk is anticipated to be 300 desks.

REQUIRED:

Based on the above information, prepare the following budgets.

REQUIRED: Based on the above information, prepare the following budgets. 1. Sales Revenue Budget (2 marks) 2. Production Budget ( 3 marks) 3 Dirert I ahnur Rudget ( 3 marks) REQUIRED: Based on the above information, prepare the following budgets. 1. Sales Revenue Budget (2 marks) 2. Production Budget ( 3 marks) 3 Dirert I ahnur Rudget ( 3 marks)