Budgeting

erating budget for the forthcoming period. ormation regarding product, costs and sales level is as follows: Product Material Required X (Kg) N - Y (Litres) Labour hours Skilled (hours) Semi-skilled Sale level 2000 1500 Opening stock 100 200 Closing stock of material and finished goods will be sufficient to meet 10% of demand. Opening stocks of material X was 300 kgs and for material Y was 1000 litres. Material prices are f10 per kgs for material X and $7 per litre for material Y. Labour costs are $12 per hour for the skilled workers and $8 per hour for the semi-skilled workers. Required: Production (units), Material usage (kg and litres), Material purchases (kg, litres and f); and Labour (hour and f) (20 marks)