You need to prepare the budget for Yellow tree for the quarter ending June 2018. The budget must be prepared monthly. The quarter consists of 13 weeks. The forecasted sales are as follows:

April 4 weeks May 5 weeks June 4 weeks July 4 weeks

Sales Units 1,250 1,500 1,750 1,800

The companys policy changed the inventory policy to keep closing inventory of completed units at 25% of the following months sales. Opening inventory on the 1st of April was 475 units.

The labour information is as follows:

Normal working hours 8 hours per day

Weekend work None, only if overtime is required.

Number of employees 20 currently Additional 10 employees will be employed for the month of June

Normal time rate R32.50 per hour

Overtime rate 30% above normal time rate per hour

Hours per unit 3 hours

1. Calculate the production budget for the quarter. (3) 2. Calculate the budgeted labour hours per month. Split the hours between normal time and overtime. (9) 3. Calculate the budgeted labour cost monthly. Split the cost between normal time and overtime. (6)