QUESTION 3 (25 MARKS) AAA trading has prepared a budget based upon the production and a sale of 150,000 units for the next trading in year 2020. However, the coronavirus pandemic has had a rapid and dramatic impact on AAA trading business activity. The management decided to revised the budget to sustain the business which would result in a RM0.20 per unit decrease to direct wages. It is anticipated that, as a result, sales would decrease by 25% without additional labour usage. The following budget is based upon the production and a sale of 150,000 units. RM000 RM000 RM000 Sales 800 Production costs Direct materials 100 Direct wages 160 Variable overhead 50 Fixed overhead 48 358 Budgeted factory profit Selling and Distribution Costs Variable 50 Fixed 30 80 Administration Costs 22 102 Budgeted Divisional Profit 340 Manufacturing, selling and distribution variable costs vary with units sold. REQUIRED: (a)Calculate revised budgeted (i) Sales (3 marks) Page 8 of 13 AFA3343 (ii) direct material cost (3 marks) (iii) direct wages (3 marks) (iv) variable overhead (3 marks) variable selling and distribution cost (3 marks) (b) Prepare a budget showing the revised profit. (10 marks) Total: 25 marks