ou are in charge of making forecasts and preparing budgets. You have been supplied with cost and revenue forecasts and details of payment as follows:1. Forecast of revenue and costs for the quarter ending 31 March 2001 January February March Shs. Shs. Shs.DirectMaterials (purchases) 112,000 100,000 135,000Wages 90,000 80,000 100,000OverheadProduction 34,000 32,000 40,000Administration 22,000 20,000 27,000Selling and distribution 13,000 11,000 18,000Sales 360,000 350,000 440,0002. Forecast of revenue and costs for the quarter ending 30 June 2001 April May June Sh. Sh. Sh.DirectMaterials (purchases) 90,000 67,000 79,000Wages 72,000 54,000 63,000OverheadProduction 45,000 36,000 40,000Administration