1. 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: Input Prices Direct materials Plastic Metal $5 per pound $4 per pound Direct manufacturing labor $10 per direct manufacturing labor-hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 6 pounds Metal 0.5 pounds Direct manufacturing labor-hours 3 hours 1 pound 5 hours Machine-hours (MH) 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal Beginning inventory 290 pounds 70 pounds Target ending inventory 410 pounds 65 pounds Cost of beginning inventory $1,102 $217 Animal Gear accounts for direct materials using a FIFO cost-flow assumption. Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 530 225 Selling price $ 205 $ 310 Target ending inventory in units 30 10 Beginning inventory in units 10 19 Beginning inventory in dollars $1,000 $4,650 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: