QUESTION 3: Taylor Co. uses Material A for manufacturing Product T and applies marginal costing. 1, The budgeted annual requirement for Material A is 120,000 kg, used" evenly over each year. The budgeted costs about Material A are as follows: - Purchase price: $ 5 per kg. - Ordering cost: $ 45 per order - Holding cost: $ 0.3 per kg per annum A safety stock of 1,000 kg of Material A is expectedly held and the average lead time is 1.5 weeks. 2, One unit of product T needs 3 kg of material, 1.5 hours of working labor and 2 hours of working machine to finish. 3, Selling price: $50 per unit. 4, Standard hourly labor pay was $8 per hour. 5, Production overheads in 2021 was budgeted based on historical data from June to Decemeber in 2020 as follows: Jun. Jul. Aug. Sep. Oct. Nov. Dec. 2020 2020 2020 2020 2020 2020 2020 Machine 10,000 11,500 12,000 11,300 11,320 12,400 11,500 hours Production 24,800 27,800 28,000 28,500 28,500 29,600 27,600 OH ($) Required: a. Identify sources of data that management accountants should collect information for their purposes. No. Data/ information Sources of data / Functional departments 1 Material purchase price 2 Available materials 3 Rate of labor pay 4 Sales volume 5 WIP degree of completion b. Calculate Economic order quantity (EOQ) and Re-order level for Material A (assume 1 year = 50 weeks) | c. Set out Standard cost card for Product T based on data above? Prepare Budget for January 2021 with total production and sales volume of 5,000 units? d. Prepare Cash budget for January 2021 and give comments about potential cash position? Scanned with CamScanner 15 15 1816 HE 21 Additional information about estimation of cash position as following: Production and sales volume: 5,000 units, cost budget collected from requirement (c). Cash sales are accounted for 80% of total sales, credit sales are always received in the following month. Credit sales from December 2020: $60,000 Cash Payment for material, labor and variable production OH expectedly incurred in January: $80,000 Production fixed OH from cost budget, including ($X1) of depreciation costs and ($X2) renting fees and ($X3) salary for factory supervisor. Renting fees is paid at the end of the year and supervisor's salary is monthly payment. Other cash payments: $5,000 Opening cash balance: $12,000