XY Limited is preparing its annual budgets for the year to 31st December 2021. It manufactures and sells one product, which has a selling price of 410.00. The marketing director belleves that the price can be increased to 450.00 with effect from 1 July 2021 and that at this price the sales volume for each quarter of 2021 will be as follows: Sales Volume Quarter 1 28 000 Quarter 2 23 000 Quarter 3 17 000 Quarter 4 32 000 Sales for each quarter of 2022 are expected to be 40 000 units. Each unit of the finished product which is manufactured requires four units of component R and three units of component T. Both items are purchased from an outside supplier. Currently prices are: Component R 5.00 each Component 2.00 each The components are expected to maintain their current levels of pricing as above during all quarter periods of 2021. Assembly of the two components into the finished product requires 6 labour hours: Jabour is currently paid 6.00 per hour. A 5% increase in wage costs is anticipated to take effect from 1st October 2021. Variable overhead costs are expected to be 10 per unit for the whole of 2021, fixed production overhead costs are excluded from the budget. Stocks on 31st December 2020 are expected to be as follows: Finished units 8 000 units Closing stocks at the end of each quarter are to be as follows: Finished units 10% of next quarter's sales Required a) Prepare the following budgets of XY Limited for the year ending 31st December 2021, showing values for each quarter and the year in total: 1) sales budget (in s and units) a) production budget (in units) ) material usage budget (in units) W) production cost budget (in s) b) Explain the meaning and critically evaluate the use of continuous or rolling budgets