Animal Transport 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 Transport accounts for direct materials using a FIFO cost-flow assumption. | (Click the icon to view the account information.) Animal Transport uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $120 per setup-hour, $10 per machine-hour, and $10 per inspection-hour, respectively. Other information follows: | (Click the icon to view the other information.) Read the requirements. Requirement 1. Prepare the revenues budget. Revenues Budget For the Month of April Units Selling price Total revenues Cat-allac 460 $ 210 Dog-eriffic 255 300 Total Product Information Input Prices Direct materials Plastic $ 6 per pound Metal $ 5 per pound Direct manufacturing labor $ 12 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 Beginning inventory Target ending inventory Cat-allac Dog-eriffic 5 pounds 7 pounds 0.5 pounds 1 pound 3 hours 5 hours 12 MH 19 MH Plastic Metal 260 pounds 50 pounds 380 pounds 40 pounds Print Done Account Information Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 460 255 Selling price $ 210 $ 300 Target ending inventory in units 40 20 Beginning inventory in units 20 35 Beginning inventory in dollars $ 2,000 $ 6,510 Animal Transport uses a FIFO cost-flow assumption for finished-goods inventory. Print Done Other information Cost Driver Information Number of units per batch Setup time per batch Inspection time per batch Cat-allac Dog-errific 20 10 1.25 hours 2.25 hours 0.5 hours 0.5 hour I If necessary, round up to calculate number of batches. Operating (nonmanufacturing) fixed costs for March equal $38,000, 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 Requirements Prepare the following for April: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Revenues budget Production budget in units Direct material usage budget and direct material purchases budget Direct manufacturing labor cost budget Manufacturing overhead cost budgets for each of the three activities Budgeted unit cost of ending finished goods inventory and ending inventories budget Cost of goods sold budget Operating (nonmanufacturing) costs budget Budgeted income statement (ignore income taxes) How does preparing the budget help Animal Transport's management team better manage the company? Print Done