Comprehensive problem with ABC costing. Pet Transport Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, coon 2. Production units:

Cat-allac 520 but the Cat-allac is smaller. Information for the two products for the month of April is given Dog-eriffic 285 in the following tables:

Nonproduction fixed costs for March equal $36,000, of which half are salaries. Salaries are expected to increase 5% in April. The only variable nonproduction cost is sales commission, equal to 1% of sales revenue.
REQUIRED Prepare the following for April:

1. Revenue budget 2. Production budget in units 3. Direct material usage budget and direct material purchases budget 4. Direct manufacturing labour 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)LO1

Transcribed Image Text:

Input prices Direct materials Plastic Metal Direct manufacturing labour Input quantities per unit of output Direct materials $4 per kilogram $3 per kilogram $10 per direct manufacturing labour hour Cat-allac Dog-eriffic Plastic 4 kilograms 6 kilograms Metal 0.5 kilograms 1 kilogram Direct manufacturing labour-hours (DMLH) 3 hours 5 hours 18 MH Machine-hours (MH) Inventory information, direct materials 10 MH Beginning inventory Target ending inventory Cost of beginning inventory Plastic 250 kilograms Metal 60 kilograms 380 kilograms 55 kilograms $950 $180 Pet Transport accounts for direct materials using a FIFO cost flow assumption.