AB Mangoyan g ing would dyed One skans of deteto a cost of $2 person and 0.75 de a cost o g theatret At the begget the year ann o 4000 w est of Od 100 goodye cost of 2.60 Targetending to wody is kuan sese FIFO vory cost med ock the convew the orion) There is a doct o r coordenadas dec o angsa bude of 12 budgets 3 hours de ch r hours thedeng w Oecond ) Tool Physical Units Budget Cost budget (Click the icon to view the budgeted overhead costs.) * More Info Xuan blue rugs are very popular and demand is high, but because of capacity constraints the firm will produce only 190,000 blue rugs per year. The budgeted selling price is $1,900 each beginning inventory. Target ending inventory of rugs is also zero. nitory Xuan makes rugs by hand, but uses a machine to dye the wool. Thus, overhead costs are accumulated in two cost pools-one for weaving and the other for dyeing. Weaving overhead is allocated to products based on direct manufacturing labor-hours (DMLH). Dyeing overhead is allocated to products based on machine-hours (MH). Print Done ] in the inpu Dyeing (based on 1,520,000 MH) Weaving (based on 13,300,000 DMLH) Variable costs Indirect materials Maintenance 0$ 6,550,000 7,540,000 15,350,000 5,530,000 3,300,000 Utilities Fixed costs Indirect labor Depreciation 337.000 2. 112,000 713,000 1,665,000 260,000 5,815,000 Other 17,252,000 $ 31 920,000 Total budgeted costs Print Done bude i Requirements - X cost nimi + 4. Prepare a direct material usage budget in both units and dollars. Calculate the budgeted overhead allocation rates for weaving and dyeing. Calculate the budgeted unit cost of a blue rug for the year. Prepare a revenues budget for blue rugs for the year, assuming Xuan sells (a) 190,000 or (b) 180,000 blue rugs (that is, at two different sales levels). Calculate the budgeted cost of goods sold for blue rugs under each sales assumption Find the budgeted gross margin for blue rugs under each sales assumption What actions might you take as a manager to improve profitability if sales drop to 180 000 blue rugs? How might top management at Xuan use the budget developed in requirements 1-6 to better manage the company? 7. 8. Print Done fields