Illuminate Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 17,000 Knox lamps and 16,000 Ayer lamps in 2020. The following data are available for the year 2020. (Click the icon to view the December 31, 2020 production budget in units.) (Click the icon to view the information.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2020. (a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2020. Schedule 3A: Direct Material Usage Budget in Quantity and Dollars for the Year Ending December 31, 2020 Physical Units Budget Material Metal Fabric Total Direct materials required for Knox lamps Direct materials required for Ayer lamps Total quantity of direct materials to be used 34000 lbs. 48000 lbs. 17,000 yards 32,000 yards 82000 49,000 lbs. yards Data table Direct materials Data table Metal $ 2 per pound (same as in 2019) Fabric $ 3 per yard (same as in 2019) Direct manufacturing labor $ 16 per hour - Schedule 2: Production Budget (in Units) for the Year Ending December 31, 2020 Content of Each Product Unit Knox Ayer Product Budgeted units sales 17,300 16,000 Knox Ayer 2,200 1,200 Metal Fabric 6 pounds 1.00 yard 7 pounds Add target ending finished goods inventory Total required units 19,500 17,200 2.00 yards 2,500 1,200 Direct manufacturing labor 0.05 hours 0.30 hours Deduct beginning finished goods inventory 17,000 16,000 Units of finished goods to be produced Direct Materials Metal Fabric Beginning inventory Target ending inventory 10,000 pounds 12,000 yards 8,000 pounds 10,000 yards Print Done