Based on the information below:
2. Suppose Lame Specialties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it could incorporate continuous improvement into the budget schedules in requirement 1. \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|l|}{ Revenues Budeet } \\ \hline & Knights Blankets & Raiders Blankets. & Total & & \\ \hline Units Sold & 130 & 190 & & & \\ \hline Selling Price: & 229 & 296 & & & \\ \hline Budgeted Revenues & 29,770 & 56.240 & 86.010 & & \\ \hline & & & & & \\ \hline \multicolumn{6}{|l|}{ Production Budget in Units } \\ \hline & Knishts Blankets & Raiders Blankets & & & \\ \hline Budgeted Unit Sales & 130 & 190 & & & \\ \hline Add budgeted ending fin Goods inventory & 22 & 27 & & & \\ \hline Total Requirements & 152 & 217 & & & \\ \hline Deduct beginning fin. Goods inventory & 12 & 17 & & & \\ \hline Budgeted Production & 140 & 200 & & & \\ \hline & & & & & \\ \hline \multicolumn{6}{|l|}{ Direct Materials Usage Budget } \\ \hline & Red Wool & Black Wool & Knights Loro patches & Ralders Loko Patches & Total \\ \hline Knights Blanket & & & & & \\ \hline 1. Budseted input per ig. unit & 560 & - & 140 & & \\ \hline 2. Budgeted Production & 585 & & 165 & & \\ \hline \multirow[t]{2}{*}{ 3. Budgeted Usage (12)} & Ss0 & & 120 & & s. \\ \hline & & & = & & \\ \hline Raiders Blankets & & & E- & & \\ \hline 4. Eudgeted input per fe. unit & & 1000 & & 200 & - \\ \hline 5. Eudgeted production & & 1025 & & 225 & \\ \hline 6. Budgeted usage (45) & & 1,010 & & 165 & = \\ \hline 7. Total Direct material usage (3+6) & 5500 & 11,110 & 840 & 1320 & - \\ \hline \multicolumn{6}{|l|}{ Direct Materials Cost Budget } \\ \hline 8. Beginning inventory & 35 & 15: & 45 & 60 & \\ \hline 9. Unit Price (FiFO) & $9 & $12 & $7 & $6 & \\ \hline 10. Cost of OM used from Bee. Inv. (89) & $315 & $189 & $315 & 5360 & $1,170 \\ \hline 11. Materials to be used from Purchuses (7-8) & 525 & 985 & 595 & $140 & - \\ \hline 12. Cost of DM in March & $10 & $11 & 7 & 8 & \\ \hline 13. Cost of DM purchased and used in March (11xi2) & $5.250 & $10835 & 8665 & 51,120 & 512870 \\ \hline 14. Direct Materials used (10+13) & $5.565 & $11,015 & $980 & $1,490 & $19040 \\ \hline \end{tabular} Direct Materials Purchases Budget Budzeted usage (from line 7) Add target ending inventory Total requirements Deduct beginning imventory Total DM purchases Purchase price (March) Total parchases Red Wool Black Wool 560 Knights togo 25 1000 Raider tero Total 25. 140 585 1025 25 35 15 165 1010 12045 s.1 511110 s. $5,500 5840 $1,320 518,770 Direct Manufacturing Labor Budket audgeted Units Direct Labor Hours per Krights Blankets Raiders Blankets 140 Output Unit 200 3 Manufacturing Overhead Budget Variable Manufacturing Overhesd Costs (1,220 \$16) Fixed Manufacturing Overhead Costs Total Manufacturing Overhead Costs Total Manufacturing Overhead Coit per Hour a fines Ovethead Cost per Hour * Computation of Unit Conts of EI of Finished Goods Direct Materials Red Wool Black Wool Knights togos Raiders togos Direct Manufacturing Laber Marufacturing Overhead Variable Fixed Total Manufacturing Costs Koishts llankets $28 Total Houn: 4 800420 1220 Hourly Rate $19,620 14.640 $27527532349Total$11,340$21,600 $12 540 Aaider Alankets 0 0 $55.0 $7.0 0 8 50 3010 510100 $48$640 $365480 $212 52230 2. Suppose Lame Specialties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it could incorporate continuous improvement into the budget schedules in requirement 1. Possible Improvements
