Animal Gear Company makes two pet carriers, the Ccat-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:

Input prices

Direct materials

Plastic $5 per pound

Metal $4 per pound

Direct Manufacturing labor $10 per direct manufactufing labor-hour

Input Quantities per Unit of Output

	Cat-allac	Dod-eriffic
Direct materials
Plastic	4 pounds	6 pounds
Metal	0.5 pounds	1 pound
Direct manufacturing labor-hours	3 hours	5 hours
Machine-hours (MH)	11 MH	19MH

Inventory Information, Direct Materials

	Plastic	Mmetal
Beginning inventory	290 pounds	70 pounds
Target ending inventory	410 pounds	65 pounds
Cost of beginning inventory	$1,102	$217

Animal Gear accounts for direct materials using a FIFO cost flow assumption

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	25
Beginning inventory in dollards	$1,000	$4,650

Animal Gear uses a FIFO cost flow assumption for finished goods inventory.

Animal Ggear 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

Cost-Driver Iinformation

	Cat-allac	Dog-eriffic
Number of units per batch	25	9
Setup time per batch	1.50 hours	1.75 hours
Inspection time per batch	0.5 hour	0.7 hour

Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are expected to increase 5% in April. The only variabe nonmanufacturing cost is sales commission, equal to 1% of sales revenue.

Prepare the following for April (SHOW ALL YOUR WORK):

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?