5 of 5 (1 complete) HW Score: 20%, 4 of 20 pe P6-40 (similar to) Question Help Pet Transport Company makes two pet carriers, the Cat-allac and the Pet Transport uses an activity-based costing system and classifles overhead Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is into three activity pools Setup, Processing and inspection Activity rates for smaller. Information for the two products for the month of April is given in the these activities are $105 per setup-hour $10 per machine-hour, and 515 per following tables inspection-hour, respectively. Other information follows (Click the icon to view the information for the two products) Click the icon to view the other information) Pet Transport accounts for direct materials using a FIFO cost-flow assumption Read the requirements Click the icon to view the account information) Requirement 1. Prepare the revenues budget Revenues Budget For the Month of April Units Selling price Total revenues Cat-allac 530 $ 205 Dog-uric 255 310 Total Exper Emery mumber tweede her and then chok Check 19 parts sung nsport accounts for direc ack the icon to view the ad 1 Product Information X ement 1. Prepare the rey Input Prices Revenues Direct materials For the Mod Units Sell 530 $ allad erittle 265 Plastic $ 5 per pound Metal S 4 per pound Direct manufacturing labor S 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 Machine-hours (MH) 11 MH 19 MH Inventory Information, Direct Materials Plastic Beginning inventory Target ending Inventory Cost of beginning inventory 230 pounds 350 pounds Metal 70 pounds 60 pounds - 210 $ 851 $ Print Done re the revenues budget. Revenues or the Mont Account Information ts Sellid 530 $ 265 Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 530 265 Selling price $ 205 $ 310 Target ending inventory in units 30 10 Beginning inventory in units 10 25 Beginning inventory in dollars $ 1,000 $ 4.650 Pet Transport uses a FIFO cost-flow assumption for finished-goods inventory s Print Done e revenues budget enues e Mont Other information . Sellid $ Cost Driver Information Cat-allac Dog-errific Number of units per batch 25 10 Setup time per batch 1.50 hours 2.00 hours Inspection time per batch 0.5 hours 0.8 hour If necessary, round up to calculate number of batches. Operating (nonmanufacturing) fixed costs for March equal $34,000, half of which are salaries Salaries are expected to increase 5% in April. Other operating fixed costs will remain the same. The only variable operating cost is sales commission, equal to 1% of sales revenue. Print Done i Requirements - 11 Prepare the following for April: 1. Revenues budget 2. Production budget in units 3. Direct material usage budget and direct material purchases budget 4. Direct manufacturing labor cost budget 5. Manufacturing overhead cost budgets for each of the three activities 6. Budgeted unit cost of ending finished goods inventory and ending inventories budget 7. Cost of goods sold budget 8. Operating (nonmanufacturing) costs budget 9. Budgeted income statement (ignore income taxes) 10. How does preparing the budget help Pet Transport's management team better manage the company? Print Done 2 of 5 (1 complete) HW Score: 20% stion Help * Requirements ny manu udgeted dye at a Jeing proces of the ye gets 55 dir. ute of $15 062.600 entory of w direct mat 1. Prepare a direct material usage budget in both units and dollars. 2. Calculate the budgeted overhead allocation rates for dyeing and weaving 3. Calculate the budgeted unit cost of a blue rug for the year 4. Prepare a revenues budget for blue rugs for the year assuming Xiang sells (a) 220,000 or (b) 195,000 blue rugs (that is, at two different sales levels) 5. Calculate the budgeted cost of goods sold for blue rugs under each sales assumption 6. Find the budgeted gross margin for blue rugs under each sales assumption 7. What actions might you take as a manager to improve profitability if sales drop to 195,000 blue rugs? 8. How might top management at Xiang use the budget developed in requirements 1-6 to better manage the company? s portion Direct M Print Done for More info