Kellaway Ltd makes aluminium junction boxes for the electrical industry. It makes the boxes in three different sizes: small, medium and large. The following details are taken from next quarter’s budget:

Rates of pay for fitters/turners and assemblers/packers are £10.00/hour and £6.00/hour respectively. Aluminium strips cost £3 each and packaging is £1/metre. Kellaway plans to have opening material stocks of 220 aluminium strips and 80 metres of packaging. The closing material stocks are 150 aluminium strips and 50 metres of packaging. The quarter’s fixed production overheads of £31,700 are attached to product lines on a direct labour hour basis.

Tasks:1.  Create the production budget for the quarter.2.  Calculate the unit production cost of each type of junction box.3.  Create the materials usage budget in quantities and value.4.  Create the materials purchases budget in quantities and value.5.  Create the direct labour budget in hours and value.