Bronco Ltd is preparing its budgets for the first six months of 20X5. It manufactures and sells one product, Product Z, which uses two different raw materials in its production.

The current selling price of product Z is RM250 per unit. It is planned to increase this price by RM25 per unit from 1 May 20X5 to compensate for an expected increase of 10 % in the cost of both raw materials and a 6% rise in direct labour cost, which are due to take effect from 1 April 20X5. Sales units in 20X5 are expected to be:

January 500

February 550

March 630

April 650

May 500

Jun 580

July 620

The following current usage and cost information per unit of product Z is available:

Material A : 5 kg @ RM4 per kg

Material B: 7 kg @ RM6 per kg

Skilled direct labour : 5 hrs @ RM7.50 per hour Unskilled direct labour : 3 hrs @ RM4.80 per hour

From February 20X5, Bronco Ltd plans to hold closing stock of product Z equal to 20 % of the next month sales. Raw material will be purchased two weeks before they are required for production. Assume each month consists for exactly four weeks.

Opening stocks in 1 February 20X5 are expected to be:

Product Z 110 units

Material A 1,415 kg

Material B 1,981 kg

Required: You are required to produce the following budgets for each of the months of February, March, April and May 20X5:

(i) Sales budgets (RM)

(ii) Production budget (Units)

(iii) Material usage budget (Kg)

(iv) Material purchased budgets (kg and RM)

(v) Labour budgets (hours and RM) for each of skilled and unskilled.