QUESTION $3[$BUDGETS AND BUDGETARY PROCESS$](30$ marks$)$

Kakwat Banza Limited manufactures and sells two products, Alpha and Romeo.

Management wishes to prepare budgets for the first quarter ending $31$ March $2024.$

The quarter consists of $26$ weeks. The following information has been provided:

Additional information:

$50$ employees work a $37$ hour, $5-$day week and are paid R$25\mathrm{.}00$ per hour

Overtime is payable at a premium of $30\%$

The employees are expected to work at $80\%$ efficiency, this is due to therecently installed

machinery

Raw materials are expected to cost R$40$ per kg

At the end of the quarter there should be sufficient raw materials on hand tomeet $32$ days of

production

Finished goods inventory levels of Product Alpha should be equivalent to $16$ days sales

volume, whilst that of Product Romeo should be equivalent to $36$ days salesvolume

Estimated inventory levels at the start of the period are expected to be asfollows:

Raw materials $11600$ kg

Product Alpha ;$410$ units

Product Romeo : $900$ units

Required

$3\mathrm{.}1$ Production Budget $($Round off to the nearest unit $)(10)$

$3\mathrm{.}2$Materials Purchase Budget $($clearly showing the cost of raw materials

purchased$)-(10)$

$3\mathrm{.}3$ Direct Labour Budget $($clearly showing the cost of labour$)(10)$