A Requirements 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. Nonmanufacturing costs budget 9. Budgeted income statement (ignore income taxes) 10. How does preparing the budget help Animal Gear's management team better manage the company? Print Done 0 Other information Cost Driver Information 10 Cat-allac Dog-errific Number of units per batch 25 Setup time per batch 1.25 hours 2.00 hours Inspection time per batch 0.5 hours 0.6 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $30,000, 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. Print Done 0 Account Information 260 Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 580 215 Selling price 190 $ Target ending inventory in units 45 25 Beginning inventory in units 25 40 Beginning inventory in dollars $ 2,500 $ 7,440 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Print Done 0 Product Information Input Prices Direct materials Plastic $ 4 per pound Metal $ 3 per pound Direct manufacturing labor $ 14 per direct manufacturing labor hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic Metal Direct manufacturing labor-hours (DMLH) Machine-hours (MH) 3 pounds 0.5 pounds 3 hours 13 MH 5 pounds 1 pound 5 hours 21 MH Inventory Information, Direct Materials Metal Beginning inventory Target ending inventory Cost of beginning inventory Plastic 220 pounds 420 pounds 858 80 pounds 70 pounds 232 $ $ Print Print Done Animal Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: and Inspection. Activity rates for these activities are $130 per setup-hour, $5 per machine-hour, and $20 per (Click the icon to view the information for the two products.) inspection-hour, respectively. Other information follows: Animal Gear accounts for direct materials using a FIFO cost-flow assumption. 5: (Click the icon to view the other information.) E: (Click the icon to view the account information.) Read the requirements. Requirement 3. Prepare the direct material usage budget and direct material purchases budget. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. Total Direct Material Usage Budget in Quantity and Dollars For the Month of April Material Plastic Metal Physical Units Budget Direct materials required for Cat-allac 1,800 lbs. Dog-errific 1,000 2,800 lbs. Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Plastic 858 Metal 232 To be purchased this period Vicial To be purchased this period Plastic Metal Direct materials to be used this period