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1:23 PM Home Insert Draw Layout Review View Calibri Bold (Bod 18BI A.A Company Information Imperial Woodworking Ltd manufacture specialist wood furniture and sell their products all over Saudi Arabia. The company was established three years ago in Jeddah and is performing well to date. Imperial woodworking Ltd have three main product lines; TV tables, dining table and chairs. The following financial information has been provided. TV tables dining Tables Chairs SAR 1,000 SAR 5,000 SAR 700 SAR 50 10 SAR 30 SAR 10 SAR 15SAR 5 Selling Price per unit Direct Materials cost per I Kg of wood SAR 50 SAR 50 35 SAR 30 timber Kg of wood timber required per unit Direct Labour hour cost Sales commission per item sold Variable manufacturing overhead per unitSAR 20 Number of labour hours per unit Budgeted sales in units AR 30 SAR 24 SAR 18 300 200 450 Additional Information: a) Other costs Production manager annual salary SAR 60,000 Annual marketing costs SAR 10,000- related to TV tables General Expenses SAR 5,000 Annual Fixed manufacturing overhead (excluding depreciation) SAR 10,000 (20% relates to TV tables) b) Annual equipment depreciation SAR 10,000 c) The company had 8 TV tables and 100 kg of wood timber in stock at the end of d) Company policy is to maintain 20% of the following months sales level as closing e) Company policy to maintain 25% of next months' production needs as closing September inventory for finished goods. inventory for direct materials. f) Budgeted sales of TV tables for the next six months are as follows October November December January February 40 35 20 20 20

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