Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables:

Animal Gear accounts for direct materials using a FIFO cost flow assumption.

Animal Gear uses a FIFO cost flow assumption for finished goods inventory.
Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $ 105 per setup-hour, $ 10 per machine-hour, and $ 15 per inspection-hour, respectively. Other information follows:

Nonmanufacturing fixed costs for March equal $ 32,000, half of which are salaries. Salaries are expected to increase 5% in April. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue.

Required
Prepare the following for April:
1. Revenues budget
2. Production budget in units
3. Direct material usage budget and direct material purchases budget
4. Direct manufacturing labor cost budget
5. Manufacturing overhead cost budgets for each of the three activities
6. Budgeted unit cost of ending finished goods inventory and ending inventories budget
7. Cost of goods sold budget
8. Nonmanufacturing costs budget
9. Budgeted income statement (ignore income taxes)
10. How does preparing the budget help Animal Gear’s management team better manage thecompany?

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Input Prices Direct materials Plastic Metal $5 perpound $ 4 per pound $10 per direct manufacturing labor-hour Direct manufacturing labor Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials 4 pounds 0.5 pounds 3 hours 11 MH 6 pounds 1 pound 5 hours 19MH Plastic Metal Direct manufacturing labor-hours Machine-hours (MH) Inventory Information, Direct Materials Beginning inventory Target ending inventory Cost of beginning inventory Plastic 290 pounds 410 pounds Metal 70 pounds 65 pounds $217 $1,102 Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 530 s 205 30 10 $1,000 225 S 310 10 25 $4,650 Cost-Driver Information Dog-eriftic Number of units per batch Setup time per batch Inspection time per batch Cat-allac 25 1.50 hours 0.5 hour 175 hours 0.7 hour