1. Explain how a budget can be used to evaluate the performance of an entity and explain how it assists to provide incentives towards goal achievement. 2. Distinguish between operating budget and financial budget. Explain this within the context of a Medical Centre operation. 3. Budget preparation Lallan and Company makes and sells upmarket carry bags for laptops. You have been given the task of preparing Lallan and Company's budget. The following data has been assembled for 2022: Estimates for the months April to July 2022: 2022 April May June July Expected unit sales 20000 24000 16000 18000 Sales price per unit 580 $80 $75 $75 Direct labour hours per unit 4 4 3.5 3.5 Direct labour hourly rate $15 $15 $16 $16 Direct materials cost per unit $10 $10 $10 $10 Additional information The direct labour rate includes wages, all employee-related benefits and the employer's share of payroll tax. Labour saving machinery will be fully operational by June. As of 1 June, the entity's enterprise agreement calls for an increase in direct labour wages that is included in the direct labour rate. Lallan has the policy of carrying 50 per cent of the following month's projected sales in inventory. Required: A. Prepare the following budgets for Lallan and Company for the second quarter of 2022. Show all the supporting calculations: i. Production budget in units ii. Direct labour budget in hours and dollars iii. Direct material budget iv. iv. Sales budget B. Discuss at least three behavioural considerations in the profit-planning and budgeting process