QUESTION 12 D Limited is preparing its annual budgets for the year to 31 December 2019 . It manufactures and sells one product, which has a selling price of GHe 150 . The marketing director believes that the price can be increased to GH\& 160 with effect from 1 July 2019 and that at this price the sale volume for each quarter of 2019 will be as follows: Sale volume Sales for each quarter of 2020 are expected to be 40,000 units. 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: The components are expected to increase in price by 10% with effect from 1 April 2019; no change is expected in the price of the shell. Assembly of the shell and components into the finished product requires 6 labour hours currently paid at GHc5.00 per hour, A 4% increase in wage cost is anticipated to take effect from 1 October 2019. Variable overheads cost are expected to be GHc10 per -unit for-the--whole of 2019; fixed production overheads cost are expected to be GHe240,000 for the year, and are absorbed on a per unit basis. Stocks on 31 December, 2018 are expected to be as follows: Required a) Prepare the following budgets of D Limited for the year ending 31 December 2019 showing values for each quarter and the year in total i. sales budget ii. production budget iii. material usage and material purchased (in total) budget iv. production cost budget b) Sales are often considered to be the principal budget factor of an organization. Explain the meaning of the 'Principal Budget Factor' and assuming that it is sales; explain how sales may be forecast making appropriate reference to use of statistical techniques and the use of microcomputers