Problem - (12 marks] 9.0 points possible (graded, results hidden) Babu Enterprise sells packaged baby foods for $50/unit and is preparing budget for the 1st quarter of 2020. His actual and budgeted data include: Details... . Nov 2019... Dec 2019... Jan 2020... Feb 2020... Mar 2020... Apr 2020... May 2020 Production in units ..... 5800......8100...... 5000...... 5200 ....... 6200...... 4700 ...... 6100 Each unit of product requires 10 kilograms of raw materials to produce. And Babu keeps an ending inventory of raw materials equal to 50% of the following month's production needs of raw materials. The price of raw material is $3/kilogram. An advance payment of 60% is to be made a month prior to purchase. 20% is paid in the month of purchase. The rest is paid in the month following purchase. Instructions: For the 1st quarter of 2020, prepare: (A) Direct Materials Budget (5 marks), (B) Cash Payment (disbursement) Schedule for Raw Materials (5 marks) and (C) Calculate the balance of accounts payable at the end of the first quarter of 2020 (2 marks). Explain.(in your own words) a) Why should Babu seek cooperation of other business functions while preparing budgets? [2 marks] b) Among ROI, RI and Balanced Scorecard, which one is the most preferable measure of measuring the performance of a decentralized organization? why and why not? [2+3=5] Explain (in your own words) a) Why should Babu seek cooperation of other business functions while preparing budgets? [2 marks] b) Among ROI, RI and Balanced Scorecard, which one is the most preferable measure of measuring the performance of a decentralized organization? why and why not? [2+3=5] Problem #2 - [7 marks] 4.0 points possible (graded, results hidden) Opu and Mamun started a new business manufacturing hair dying cream. They both kept separate set of accounts of their business. However, at the end of the first year of operations their net incomes didn't match. A fight was about to start between the two owing to discrepancy in net incomes, Rafsan, their friend, asked them to present their income statements. As such information relating to the business's the first year of operation follow: Production in units. Sales in units..... Variable manufacturing cost per unit produced. Variable selling and administrative expense per unit sold. Fixed manufacturing overhead costs (total)..... 26000 20000 $9 $3 $314000 Using the above data, Mamun presented the following income statement: Sales (20000 units). $860000 Cost of goods sold. $421538.46153846156 Gross margin: $438461.53846153844 Selling and administrative expenses. $244300 Net operating income... $194161.53846153844 Opu, on the other hand asked for your help to prepare a variable costing income statement. Prepare a variable costing income statement of Opu and Mamun (5 marks) and explain why the net income between the two methods differ (2 marks)