Wollongong wishes to calculate an operating budget for the forthcoming period. Information regarding products, costs and sales levels is as follows:

Product                                                                                                               A                                B

Materials required

X  (kg)                                      2                   3

Y  (litres)                                     1                   4

Labour hours required

          Skilled (hours)                                                                           4                                2

              Semi-skilled (hours)                                             2                                5

Sales level (units)                                                                                                                            2,000                          1,500

Opening stocks (units)                                                                                              100                                                             200

 

Closing stock of materials and finished goods will be sufficient to meet 10% of demand. Opening stocks of material X was 300 kg and for material Y was 1,000 litres. Material prices are £10 per kg for material X and £7 per litre for material Y. Labour costs are £12 per hour for the skilled workers and £8 per hour for the semi-skilled workers.

 

Required:

Produce the following budgets:

(a)   production (units);

(b)  materials usage (kg and litres);

(c)   materials purchases (kg, litres and £); and (d) labour (hours and £).