A company manufactures two products

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Reference no: EM13941168

A company manufactures two products, X & Y. It uses three materials in its manufacture, A, B and C and both unskilled and skilled labour are used. The standard costs for both products for next year are as follows:

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Budgeted Sales for next year:
Product X 2,900 units;
Product Y 3,700 units.

Required

a) Prepare the following budgets for next year:
i) The production budget of both X and Y, in units ii) The material usage budgets, in kg
iii) The material purchases budget, in kg and £
iv) The direct labour budget, in hours and £

b) Describe and explain the main purposes of budgets.

Reference no: EM13941168

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