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.) 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 $130 per setup-hour, $5 per machine-hour, and $20 per inspection-hour, respectively. Other information follows: (Click the icon to view the other information.) Read the @quirement Requirement 1. Prepare the revenues budget. Revenues Budget For the Month of April Units Selling price Total revenues Cat-allac Dog-eriffic 580 $ 190 215 260 Total S Requirements - in ct a 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 rev ues Mor Sell 7. 8. 9. Budgeted income statement (ignore income taxes) Cost of goods sold budget Operating (nonmanufacturing) costs budget 10. How does preparing the budget help Animal Gear's management team better manage the company? Other information Cost Driver Information Cat-allac Dog-errific Number of units per batch 25 10 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. Operating (nonmanufacturing) fixed costs for March equal $36,000, 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.. - X Product information 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 Direct materials Plastic Metal Direct manufacturing labor-hours Machine-hours (MH) Inventory Information, Direct Materials Cat-allac Dog-eriffic 3 pounds 5 pounds 0.5 pounds 1 pound 3 hours 5 hours 13 MH 21 MH Plastic Metal Beginning inventory 240 pounds 70 pounds Target ending inventory 400 pounds 60 pounds Cost of beginning inventory $ 1,008 196 - X Account information Sales and Inventory Information, Finished Goods Expected sales in units Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars Cat-allac Dog-eriffic 580 215 190 $ 260 45 25 25 40 $ 2,500 $ 7,440 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Print Done