10 4 0 complete This Question: 30 pts Xuereb Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 40 skeins of wool at a cost of $3 person and 0.7 gallons of dye at a cost of $ per gallonAll other materials are Indirect At the beginning of the year Xuereb has an inventory of 460.000 skens of wool at a cost of $1,012.000 and 4, 100 gallons of dye at a cost of $24,395 Targetenting invertory of wool and dye is zero. Xuereb uses the FIFO inventory cost flow method Alcick the icon to view the additional information There is no direct manufacturing labor cost for dyeing. Xuereb budgets 70 direct manufacturing labor hours machine hours to dye sath skin in the to weave a rugat a budgeted rate of $14 per hour budgets dyeing process Click the icon to view the budget overhead costs) Read the requirements Requirement 1. Prepare a direct material usage budget in both unit and dollars. Begin with the physical units portion, the prepare the cost budget portion of the drect material usage budget Direct Material Usage Budget in Quantity and Dollars Material Wool Dye Total Physical Units Budget Direct materiais required for Blue rugs Cost Budget Available from beginning direct materials inventory under a FIFO cost how assumption Choose from any list or enter any number in the input fields and then continue to the next question wool and dye is zero. Xuereb uses the FIFO inventory cost flow method (Click the icon to view the budgeted overhead costs.) 0 More Info vent 1. Prepare a direct material usage h the physical units portion, then prepare Direct Material Usag Xuereb blue rugs are very popular and demand is high, but because of capacity constraints the firm will produce only 210,000 blue rugs per year. The budgeted selling price is $2,100 each. There are no rugs in beginning inventory. Target ending inventory of rugs is also zero Xuereb makes rugs by hand, but uses a machine to dye the wool. Thus, overhead costs are accumulated in two cost pops one for weaving and the other for dye ng Weaving overhead is a located to products based on direct manufacturing labor hours (DMLH). Dyeing overhead is allocated to products based on machine-hours (MH). Ical Units Budget materials required for Blue rugo Budget alat from beginning direct materials inventory under a FIFO cost-flow assumption) Print Done 0 Data Table acturing Company manufactures by Use 40 skins of wool at a cost of er materials are indirect. At the begi lat a cost of $1,012.000 and 4,100 wool and dye is zero. Xuereb uses the preb budgets 70 direct manufacturi Jots 0.3 machine-hours to dye each The following table presents the budgeted overhead posts for the dyeing and weaving cost pools: Dyeing (based on 2,520,000 MH) Weaving (based on 14,700,000 DMLH) ant 1. Prepare a direct material usage the physical units portion, then prepare Direct Material Usag Variable costs Indirect materials Maintenance OS 6,570,000 7,500,000 15,450,000 5,550,000 4,000,000 Units Budget materials required for Utilities Fixed costs Indirect labor Depreciation 355,000 2,168,000 735 000 1.755.000 275,000 5.820,000 Jerugs Budget ble from beginning direct materials invento nder a FIFO Co-low assumption) Other Total budgeted costs 17388 000 $ 33.810.000 ose from any list or enter any number in the Print Done CUSCULUJ pel DNI UM 0.1 yun Oy There is no direct manufacturing labor cost for dyeing. Xuereb buc 7. It budgets 0.3 t the beginning of the year Xuereb has an inventory of 460.000 und 4,100 gallons eb uses the FIFO A Requirements costs.) 1. erial usage budget il then prepare the cod 3. 4. material Usage Budg 5. Prepare a direct material usage budget in both units and dollars. Calculate the budgeted overhead allocation rates for weaving and dyeing. Calculate the budgeted unit cost of a blue rug for the year. Prepare a revenues budget for blue rugs for the year, assuming Xuereb sells (a) 210,000 or (b) 190,000 blue rugs (that is, at two different sales levels) Calculate the budgeted cost of goods sold for blue rugs under each sales assumption Find the budgeted gross margin for blue rugs under each sales assumption. What actions might you take as a manager to improve profitability if sales drop to 190,000 blue rugs? How might top management at Xuereb use the budget developed in requirements 1-6 to better manage the company? 6. 7. 8. materials inventory mption) Print Done