Problem 5[20%]Sanchez Corporation is a manufacturing company that processes direct materials A and B into two products: X and Y. Although theX and Y are a matching set, they are sold individually and so the sales mix is not 1: 1. Sanchez is planning annual budget for fiscalyear 2020. Here is information for 2020: 

Sanchez accounts for direct materials using a FIFO cost flow.

Sanchez uses a FIFO cost flow assumption for finished goods inventory. X is manufactured in batches of 200, and Y is manufacturedin batches of 100. It takes 20 minutes to set up for a batch of X and 1 hour to set up for a batch of Y. Sanchez uses activity-basedcosting and has classified all overhead costs into activity cost pools as shown in the following table. 

Required:

【題組】1. Compute the budgeted purchasing costs of direct material A (5%) and B (5%) on the direct material purchases budget for the year2020.