QUESTION $2$

$(20$ Marks$)$

REQUIRED

Use the information given below to prepare the following budgets for Product Choc and Product Nutty for January $2024.$

$21$ Sales Budget $($units and Rands$)$

$(2$ mank$)$

$2\mathrm{.}2$ Production Budget $($units$)$

$(6$ marks$)$

$23.$ Direct Labour Budget $($Rands$)$

$(4$ marks$)$

$24$ Manufacturing Overheads Budget $($Rands$)$

$(2$ marks$)$

$2\mathrm{.}5$ Cost of Sales Budget $($Rands$)$

$(6$ marks$)$

INFORMATION

Snacko Limited manulactures and sells two products viz. Product Choc and Product Nutty. The following information is avaliable to determine the budget requirements for January $2024$

$1$ Projected sales for January and February $2024$ :

$\backslash$table$[[$January$,$February$],[50000$ units of Choc at R$50$ each,$45,000$ units of Choc at R$55$ each$],[25000$ units of Nutty at R$100$ each,$20000$ units of Nutty at R$105$ each$]]$

The poilcy of Snacko Limited is to maintain a closing inventory equal to $40\%$ of the budgeted sales of the following month

Labour hours required to produce one unit of each product and the rate per hour are as follows: Choc $0\mathrm{.}5$ hours at R$10$ per hour

Nutty. $1$ hour at R$13$ per hour

Wanufacturing owirheads tor each product are projected at a rate of R$0.75$ per labour hour

The fotal manufacturing costs per unit $($including the costs abowo$)$ have been forecasted at R$23$ for ChoC and R$53$ for Nejtly for Decienber $2023$ as wet as tanuary $2024$