Input Prices Direct materials Plastic $ $ 6 per pound 5 per pound Metal Direct manufacturing labor 12 per direct manufacturing labor hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials 7 pounds 1 pound 5 hours Plastic 5 pounds Metal Direct manufacturing labor-hours (DMLH) Machine-hours (MH) Inventory Information Direct Materials 0.5 pounds 3 hours 12 MH 20 MH Plastic Metal Beginning inventory 270 pounds 60 pounds i Data Table $6 per pound $5 per pound Plastic Metal Direct manufacturing labor 12 per direct manufacturing labor hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials 7 pounds 1 pound 5 hours Plastic 5 pounds 0.5 pounds Metal Direct manufacturing labor-hours (DMLH) Machine-hours (MH) Inventory Infordation, Direct Materials 3 hours 12 MH 20 MH Beginning inventory Target ending inventory Cost of beginning inventory Plastic 270 pounds 370 pounds Metal 60 pounds 55 pounds $1,080 s 1,080 174 Data Table Data Table Sales and Inventory Information, Finished Goods Cost Driver Information Cat-ellac Dog eriffilc Cat-allac Dog-errific Expected sales in units Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 255 210 300 20 35 $ 2,000 $ 6,510 460 Number of units per batch Setup time per batch Inspection time per batch 20 10 1.25 hours 2.25 hours 0.5 hours 0.5 hour 40 20 Nonmanufacturing fixed costs for March equal $34,000, of which half are salaries | Salaries are expected to increase 5% in Apri. The only variable nonmanutacturing cost is sales commission, equal to 1% of sales revenue. Animal Gear uses a FIFO cost flow assumption for finished good inventory Animal Gear Company makes two pet cames, the Cat-allac and the Dog-erific They are both made Animal Gear uses an actvity-based cosing syseom and classies overtead into three actvity pools: of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month Setup, Processing, and Inspection. Activity rates for these activiies are $120 per setup-hour, $10 per of April is given in the following tables E! (Click the icon to view the information for the two products.) Animal Gear accounts for direct materials using a FIFO cost low assumption machine-hour, and $10 per inspection-hour, respectively. Other information follows (aick the icon to view the other nformation) Read the requirements (Click the icon to view the account informaion.) Resquiroments Begin with the physical units portion, then prepare the cost budget portion of the direct materia Direct Material Usage Budget in Quantity and Dollars For the Month of Apri Prepare the following for Apri: 1. Revenues budget 2. Production budget in units Material 3. Direct material usage budget and direct material purchases budget 4. Direct manufacturing labor cost budget . Manufacturing overhead cost budgets for each of the three activities 6. Budgeted unit cost of ending frished goods inventory and ending Plastic Metal Physical Units Budget Direct materials required for 2,400 bs. 240 lbs. 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 Cat-alac Dog-emific bs. lbs. 480 Total quantity of direct material to be used Cost Budget beter manage the company
