5- Comprehensive problem with ABC costing. 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 1 pound Direct manufacturing labor-hours 3 hours 5 hours 11 MH 19 MH Machine-hours (MH) Inventory Information, Direct Materials Beginning inventory Plastic 290 pounds Metal 70 pounds Target ending inventory 410 pounds Cost of beginning inventory $1,102 65 pounds $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: Animal Gear accounts for direct materials using a FIFO cost- flow assumption. Sales and Inventory Information, Finished Goods Cat-allac Dog-riffic 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 $4,850 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: Cost-Driver Information Number of units per batch Setup time per batch Inspection time per batch Cat-allac Dog-riffic 25 1.50 hours 1.75 hours 0.5 hour 0.7 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are expected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. Prepare the following for April: Required: 1. 2. Revenues budget Production budget in units 3. Direct material usage budget and direct material purchases budget 4. 5. Direct manufacturing labor cost budget Manufacturing overhead cost budgets for each of the three activities