16-2 (similar to) Question Help Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer It expects to manufacture 22,000 Knox lamp and 14,000 Ayer lamps in 2017. The following data are available for the year 2017 (Click the icon to view the information.) (Click the icon to view the December 31, 2017 production budget in units.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2017 (a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2017 Schedule 3A: Direct Material Usage Budget in Quantity and Dollars for the Year Ending December 31, 2017 Material Metal Fabric Total Physical Units Budget Direct materials required for Knox lamps Direct materials required for Ayer lamps lbs Total quantity of direct materials to be used lbs. yards yards lbs. yards Direct materials Metal $ Fabric Direct manufacturing labor 2 per pound (same as in 2016) $ 3 per yard (same as in 2016) $ 23 per hour Content of Each Product Unit Product Knox Ayer Metal 2 pounds 1 pounds 1 yard Fabric 2 yards Direct manufacturing labor 0.1 hours 0.25 hours Direct Materials Metal Fabric 16,000 pounds 10,000 yards Beginning inventory Target ending inventory 14,000 pounds 8,000 yards Print Done Schedule 2: Production Budget (in Units) for the Year Ending December 31, 2017 Knox Ayer 14,000 Budgeted units sales 23,200 1,900 900 Add target ending finished goods inventory Total required units 25,100 3,100 14,900 900 Deduct beginning finished goods inventory 22,000 14,000 Units of finished goods to be produced Print Done