) Daima Ltd is preparing its annual budgets for the year to December 31. It manufactures and sells one product, which has a selling price of TZS 15,000/=. The marketing director believes that the price can be increased to TZS 16,000/= with effect from July 1, 2023 and that at this price the sales volume for each quarter will be as follows: Quarter Sales Volume (in units) Quarter 1 40,000 Quarter 2 50,000 Quarter 3 30,000 Quarter 4 45,000 Sales for each quarter of the following year are forecasted to be 40,000 units. This is the normal volume under normal efficient operating conditions. Each unit of the finished product which is manufactured requires four units of component R and three units of component T, together with a body shell S. These items are purchased from an outside supplier. Currently prices are: Quarter Prices (in TZS) Component R 800/= each Component T 500/= each Shell S 3,000/= each The components are expected to increase in price by 10% with effect from April 1, 2023; no change is expected in the price of the shell. IAA MAF AND MA 2022/2023 OPEN TEST Page 3 of 4 IAA Assembly of the shell and components into the finished product requires six labour hours: labour is currently paid at TZS 1,000/= per hour. A 4% increase in wage costs is anticipated to take effect from October 1, 2023. Variable overhead costs are forecasted to be TZS 1,000/= per unit for the whole of the year; fixed production overhead costs are expected to be TZS 24,000,000/= for the year, and are absorbed on a per unit basis. Opening inventories are expected to be as follows: Finished units 9,000 units Component R 3,000 units Component T 5,500 units Shell S 500 units Closing inventories at the end of each quarter are desired to be as follows: Finished units 10% of next quarters sales Component R 20% of next quarters production requirements Component T 15% of next quarters production requirements Shell S 10% of next quarters production requirements Required: (i) Prepare the following budgets of Daima Ltd for the year ending 31 December 31, 2023, showing values for each quarter and the year in total: (1) Sales budget (in units and TZS) (2) Production budget (in units) (3) Material usage budget (in units) (4) Production cost budget (in TZS). NB: Assume now is September 30, 2022.