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: (Click the icon to view the information for the two products.) Animal Gear accounts for direct materials using a FIFO cost-flow assumption. (Click the icon to view the account information.) -C 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: (Click the icon to view the other information.) Read the requirements. $ 27,300 Total Requirement 5. Prepare the manufacturing overhead cost budgets for each of the three activities. Begin the manufacturing overhead cost budgets for each of the three activities by first calculating the total setup time. Units to be produced Cat-allac 550 Dog-errific Total 25 9 Units per batch + Number of batches 22 1.50 1.75 Setup time per batch x hrs. hrs. Total setup time hrs. hrs. hrs. Get more help Clear all Check answer Product information Input Prices Direct materials Plastic Metal $ 5 per pound $ 4 per pound $ 10 per direct manufacturing labor hour Direct manufacturing labor Input Quantities per Unit of Output Direct materials Plastic Metal Direct manufacturing labor-hours Machine-hours (MH) Inventory Information, Direct Materials Cat-allac Dog-eriffic 4 pounds 6 pounds 0.5 pounds 1 pound 3 hours 5 hours 11 MH 19 MH Plastic Metal Beginning inventory 290 pounds 70 pounds Target ending inventory 410 pounds 65 pounds Cost of beginning inventory $ 1,102 $ 217 Drint Done - Account information 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. Print Done Other information C Ac b-h ati Cost Driver Information ati Cat-allac Number of units per batch 25 Dog-errific 9 Setup time per batch 1.50 hours 1.75 hours Inspection time per batch 0.5 hours 0.7 hour If necessary, round up to calculate number of batches. Operating (nonmanufacturing) fixed costs for March equal $32,000, 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 p Next, calculate the budgeted cost for each activity. Begin by determining the formula, then calculating the amount. The first cost is budgeted machine setup costs. Activity rate per setup hr. $ 120 X X Total setup time 84 = Budgeted machine setup costs $ 10,080 Now determine the formula for budgeted processing costs, then calculate the cost. Budgeted ( machine hrs.-Cat-allac ( 5,760 Budgeted machine hrs.-Dog-errific 4,320 )x Activity rate per machine hr. ) x $ 10 Budgeted processing costs 100,800 Next determine the formula, then calculate the last cost, budgeted inspection costs. (Round the hours to one decimal place.) Budgeted Budgeted ( inspection hrs.--Cat-allac + inspection hrs.-Dog-errific 12.0 12.0 )x Activity rate per inspection hr. ) x $ 10 Budgeted inspection costs = $ 240 Now prepare the manufacturing overhead cost budgets for each of the three activities. Manufacturing Overhead Budget For the Month of April Machine setup costs $ 10,080 Processing costs 100,800 Inspection costs 240 $ 111,120 Total Requirement 6. Prepare the budgeted unit cost of ending finished goods inventory and ending inventories budget. First, prepare the budgeted unit cost of ending finished goods inventory. (Round the hours to four decimal places and the totals to two decimal places.) Unit Costs of Ending Finished Goods Inventory April 30 Product Requirement 6. Prepare the budgeted unit cost of ending finished goods inventory and ending inventories budget. First, prepare the budgeted unit cost of ending finished goods inventory. (Round the hours to four decimal places and the totals to two decimal places.) Unit Costs of Ending Finished Goods Inventory April 30 Product Cat-allac Dog-errific Cost per Input per Input per unit of unit of unit of input output Total output Total Plastic $ Metal Direct manufacturing labor 12 652 5 lbs. 30.00 7 lbs. 42.00 0.5 lbs. 2.50 1 lb. 5.00 3 hrs. 36.00 5 hrs. 60.00 Machine setup 120 hrs. hrs. Processing 10 12 MH 18 MH Inspection 10 10 hrs. hrs. Total I'm having trouble with requirement 6. Can you help with this one please? Thanks! Show transcribed image text