$6-35$ Budget schedules for a manufacturer. Woodechuck$$s manufactures, among other things, jerseys

for the girls$$ football teams in two high schools in Australia. The company uses fabric to create the jerseys

and sews on a logo patch purchased from a licensed store. The teams are as follows:

Olympique, with red jerseys and the Olympique logo

$$ Victoria Aces, with blue jerseys and the Victoria logo

Also, the blue jerseys are slightly longer than the red jerseys.

The budgeted direct$-$cost inputs for each product in $2020$ are as follows:

Olympique Victoria Aces

Red fabric $4$ yards $0$ yards

Blue fabric $05$

Olympique logo patches $10$

Victoria Aces logo patches $01$

Direct manufacturing labor $3$ hours $4$ hours

Data pertaining to the direct materials for March $2020$ are as follows:

Actual Beginning Direct Materials Inventory, March $1,2020$

Olympique Victoria Aces

Red fabric $35$ yards $0$ yards

Blue fabric $015$

Olympique logo patches $450$

Victoria Aces logo patches $060$

Target Ending Direct Materials Inventory, March $31,2020$

Olympique Victoria Aces

Red fabric $25$ yards $0$ yards

Blue fabric $025$

Olympique logo patches $250$

Victoria Aces logo patches $025$

Unit cost data for direct$-$cost inputs pertaining to February $2020$ and March $2020$ are as follows:

February $($Actual$)$ March $($Budgeted$)$

Red fabric $($per yard$)$ A$ $9$ A$$10$

Blue fabric $($per yard$)1211$

Olympique logo $($per patch$)77$

Victoria Aces logo $($per patch$)68$

Manufacturing labor cost per hour $2627$

Manufacturing overhead $($both variable and fixed$)$ is allocated to each jersey based on budgeted direct manufacturing labor$-$hours per jersey. The budgeted variable manufacturing overhead rate for March $2020$ is

A$$16$ per direct manufacturing labor$-$hour. The budgeted fixed manufacturing overhead for March $2020$ is

A$$14,640.$ Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.

Data relating to finished$-$goods inventory for March $2020$ are as follows:

Olympique Victoria Aces

Beginning inventory in units $1217$

Beginning inventory in Australian dollars $($cost$)$ A$$1,440$ A$$2,550$

Target ending inventory in units $2227$

Budgeted sales for March $2020$ are $130$ units of the Olympique jerseys and $190$ units of the Victoria Aces

jerseys. The budgeted selling prices per unit in March $2020$ are A$$229$ for the Olympique jerseys and A$$296$

for the Victoria Aces jerseys. Assume the following in your answer:

$$ Work$-$in$-$process inventories are negligible and ignored.

$$ Direct materials inventory and finished$-$goods inventory are costed using the FIFO method.

$$ Unit costs of direct materials purchased and finished goods are constant in March $2020$

$1.$ Prepare the following budgets for March $2020$:

a$.$ Revenues budget

b$.$ Production budget in units

c$.$ Direct material usage budget and direct materials purchases budget

d$.$ Direct manufacturing labor costs budget

e$.$ Manufacturing overhead costs budget

f$.$ Ending inventories budget $($direct materials and finished goods$)$

g$.$ Cost of goods sold budget

$2.$ Suppose Woodechuck$$s decides to incorporate continuous improvement into its budgeting process.

Describe two areas where it could incorporate continuous improvement into the budget schedules in

requirement $1.$