Question Two: (18 marks) (B1, C1) Part A: (10 marks) Ahlia, Inc. has budgeted direct materials purchases of $400,000 in March and $300,000 in April. Past experience indicates that the company pays for 40% of its purchases in the month of purchase and the remaining 60% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense $130,000 Purchase of office equipment 210,000 Selling and administrative expenses 126,000 Depreciation expense 18,000 Instructions Compute the amount of budgeted cash disbursements for April Part B: (8 marks) Ahlia Company is preparing its direct labor budget for 2021 from the following production budget based on a calendar year: Quarter 1 60,000 2 30,000 3 45,000 4 75,000 Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to 511 per bour on October 1. Instructions Prepare a direct labor budget for 2021 1