is budgeted to use 36 skeins of wool at a cost of acturing Company manufactures blue rugs, using wool and dye as direct materials. One rug All other materials are indirect. At the beginning of the Skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $6 per gallon. at a cost of $961,800 and 4,000 gallons of dye at a cost of $4 re indirect. At the beginning of the year Xander has an inventory of 458,000 skeins of wool zero. Xander uses the FIFO inventory cost-flow method. and 4,000 gallons of dye at a cost of $23,680. Target ending inventory of wool and dye is e FIFO inventory cost-flow method. Xander blue rugs are very popular and high, but because of capacity constraints the firm will produce only 200,000 blue rugs per year. The budgeted selling price is $2.000 each. There are no rugs in beginning inventory. Target ending mventory of rugs is also zero. Xander makes rugs by hand, but uses a machine to dye the wool. Thus, overhead inventory of rugs is also costs are accumulated in two cost pools one for wegving and the other for dyeing, Weaving overhead is allocated to products based on direct manufacturing labor-hours (DMLH). Dyeing overhead is allocated to products based on machine-hours (MH).There is no direct manufacturing labor cost for dyeing. Xander budgets 62 direct manufacturing labor-hours to weave a rug at a budgeted rate of per hour. It budgets 0.2machine-hours to dye each skein in the dyeing process. The following table presents the budgeted overhead costs for the dyeing and weaving cost pools Dyeing Weaving (based on 12,400,000 DMLH) (based on 1,440,000 MH) $ 0 6,560,000 7,550,000 $15,400,000 5,540,000 2,890,000 Variable costs Indirect materials Maintenance Utilities Fixed costs Indirect labor Depreciation Other Total budgeted costs 347,000 2,100,000 723,000 517,280,000 1,700,000 274,000 5,816,000 $31,620,000 1. Prepare a direct materials usage budget in both units and dollars. 2. Calculate the budgeted overhead allocation rates for weaving and dyeing. 3. Calculate the budgeted unit cost of a blue rug for the year