Do the requirements.

Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. Revenues Budget For the Month of March Units Selling Price Total revenues Broncos Blankets 200 $973 Rams Blankets 225 1,064 Total b. Prepare the production budget in units. Production Budget For the Month of March Broncos Rams Budgeted units sales Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory Units of finished goods to be produced c. Prepare the direct material usage budget and direct material purchases budget. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. (For amounts with a zero balance, make sure to enter "o" in the appropriate cell.) Direct Material Usage Budget in Quantity and Dollars For the Month of March Material Broncos Rams logo Red wool Black wool logo patches patches Total Physical Units Budget Direct materials required for Broncos yds. Rams yds. yds. Total quantity of direct material to be used yds. yds. yds. Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Broncos Rams To be purchased this period Broncos Rams Direct materials to be used this period Now prepare March's direct material purchases budget. Direct Materials Purchases Budget For the Month of March Materials Broncos Rams Red wool Black wool logo patches logo patches Physical Units Budget To be used in production yds. yds. Add target ending inventory Total requirement yds. yds. Deduct beginning inventory yds. yds. Purchases to be made yds. Cost Budget Purchases d. Prepare the direct manufacturing labor costs budget. (Abbreviation used: DMLH = Direct manufacturing labor hours) Total yds. yds. yds. Direct Manufacturing Labor Costs Budget For the Month of March Output units DMLH Total Hourly produced per unit DMLH wage rate Total Broncos blankets Rams blankets Total e. Prepare the manufacturing overhead costs budget. Start by selecing the formula, and calculating the budgeted variable manufacturing overhead costs for March Variable manufacturing Total direct manufacturing labor hours Variable overhead rate overhead costs Now prepare the total manufacturing overhead cost budgets by entering the appropriate amounts then calculate the total manufacturing overhead costs. Manufacturing Overhead Budget For the Month of March Variable manufacturing overhead costs Fixed manufacturing overhead costs Total manufacturing overhead costs f. Prepare the ending inventories budget (direct materials and finished goods). Complete the information below by entering the appropriate amounts to calculate the unit costs of ending finished goods inventory for the Broncos blankets and Rams blankets. Remember the fixed manufacturing overhead rate is the total fixed manufacturing overhead divided by the total direct manufacturing labor hours. Unit Costs of Ending Finished Goods Inventory March 31, 2017 Product Broncos Rams Cost per Input per Cost per Input per unit unit unit unit of input of output Total of input of output Total Wool yds. yds. Logo Direct manufacturing labor hrs. hrs. Fixed manufacturing overhead hrs. hrs. Variable manufacturing overhead hrs. hrs. Total Now prepare the ending inventories budget. Ending Inventories Budget March 31, 2017 Cost per Quantity unit Total Direct materials Red wool Black wool Broncos logo Rams logo Finished goods Broncos blankets Rams blankets Total ending inventory g. Prepare the cost of goods sold budget. Cost of Goods Sold Budget For the Month of March, 2017 Beginning finished goods inventory, March 1 Direct materials used Direct manufacturing labor Manufacturing overhead Cost of goods manufactured Cost of goods available for sale Deduct ending finished goods inventory, March 31 Cost of goods sold Additional Blanket Information -X Direct-Cost Inputs X The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams are as follows: Broncos, with red blankets and the Broncos logo Rams, with black blankets and the Rams logo Also, the black blankets are slightly larger than the red blankets. Unit cost data for direct-cost inputs pertaining to February 2017 and March 2017 are as follows: February 2017 (actual) March 2017 (budgeted) Red wool fabric (per yard) $ 16 $ 17 Black wool fabric (per yard) 26 25 Broncos logo patches (per patch) 14 14 Rams logo patches (per patch) 13 15 Manufacturing labor cost per hour 33 34 i Manufacturing Overhead Information - X Budgeted Direct-Cost Inputs - X The budgeted direct-cost inputs for each product in 2017 are as follows: Broncos Blanket Rams Blanket Red wool fabric 11 yards 0 yards Black wool fabric 0 Broncos logo patches 1 0 Rams logo patches 0 1 Direct manufacturing labor 10 hours 11 hours 12 The budgeted variable manufacturing overhead rate for March 2017 is $23 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2017 is $37.480. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Finished Goods Inventory 0 A Direct Materials Unit data pertaining to the direct materials for March 2017 are as follows: Data relating to finished goods inventory for March 2017 are as follows: Broncos Blanket Rams Blanket Beginning inventory in units 26 31 Beginning inventory in dollars (cost) $ 5,200 $ 4,991 Target ending inventory in units 36 41 Actual Beginning Direct Materials Inventory (3/1/2017) Broncos Blanket Rams Blanket Red wool fabric 70 yards O yards Black wool fabric 0 50 Broncos logo patches 80 0 Rams logo patches 0 95 * Sales and Other Information Target Ending Direct Materials Inventory (3/31/2017) Broncos Blanket Rams Blanket Red wool fabric 60 yards 0 yards Black wool fabric 0 60 Broncos logo patches 60 0 Rams logo patches 0 60 Budgeted sales for March 2017 are 200 units of the Broncos blankets and 225 units of the Rams blankets. The budgeted selling prices per unit in March 2017 are $973 for the Broncos blankets and $1,064 for the Rams blankets. Assume the following in your answer: Work-in-process inventories are negligible and ignored. Direct materials inventory and finished goods inventory are costed using the FIFO method. Unit costs of direct materials purchased and finished goods are constant in March 2017 0 Requirements > C. 1. Prepare the following budgets for March 2017 a. Revenues budget b. Production budget in units Direct material usage budget and direct material purchases budget d. Direct manufacturing labor costs budget e. Manufacturing overhead costs budget Ending inventories budget direct materials and finished goods) g. Cost of goods sold budget 2. Suppose Labo 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. f