XYZ Ltd is preparing budget for the vear ended 31 December 2006. The company manufactures and sells one product. The selling price is $150 per unit but this will increase to $260 as from 1 July 2005. The budgeted sales volumes are: Units January to march 40.000 Apnl to June 50,000 July to September 30.000 October to December 45.000 Sales for January to March 2007 are expected to be 40,000 units Each unit of products uses 3 units of Component A, 2 units of Component B and 1 unit of Component C, the current unit price of which are as follows Component A Components Component $ 9 6 25 the product are %30 per unit, this will increase by 5% from 1 October 2006 Component A and B are expected to increase in price by 10% from 1 April 2006.Component C will rise by 5% from the same date. Labour costs for Variable production overhead will be $10 per unit Fixed production overhead is budgeted at $254,000 for the year and incurred evenly over each period Stock of finished units is budgeted at 20% of the next three month period's sales. No stock of components are hold. Required: Prepare the following budgets for XYZ Ltd for each of the four three-month periods of 2006 La) Sales budget in $ and units) {b) Production budget (in units) (c) Component usage budget (in units) (d) Production cost budget in $'000) Activate Wil Go to Settings