=+Woolmark Manufacturing makes rugs by hand but uses a machine to dye the wool. Thus overhead costs are accumulated in two cost pools—one for weaving and the other for dyeing. Weaving overhead is allocated to product based on direct manufacturing labour-hours (DMLH). Dyeing overhead is allocated to product based on machine-hours (MH).

There is no direct manufacturing labour cost for dyeing. Woolmark Manufacturing budgets 62 direct manufacturing labour-hours to weave a rug at a budgeted rate of $13 per hour. It budgets 0.2 machine-hours to dye each skein in the dyeing process.

The following table presents the budgeted overhead costs for the dyeing and weaving cost pools:

Dyeing (based on 1 440 000 MH) Weaving (based on 12 400 000 DMLH)

Variable costs Indirect materials $0 $15 400 000 Maintenance 6 560 000 5 540 000 Utilities 7 550 000 2 890 000 Fixed costs Indirect labour 347 000 1 700 000 Depreciation 2 100 000 274 000 Other 723 000 5 816 000 Total budgeted costs $17 280 000 $31 620 000 Required 1 Prepare a direct materials usage budget in both units and dollars.