Lakin Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. 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: i (Click the icon to view team information.) Additional information follows: (Click the icon to view the budgeted direct-cost.) (Click the icon to view the direct materials.) (Click the icon to view the direct-cost inputs.) Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. The budgeted variable manufacturing overhead rate for March 2013 is $19 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2013 is $25,250. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. (Click the icon to view the finished goods inventory.) (Click the icon to view additional information.) Read the requirements. The budgeted direct-cost inputs for each product in 2013 are as follows: Raiders Blanket Red wool fabric Black wool fabric Knight logo patches Raider logo patches Direct manufacturing labor Knights Blanket 7 yards 0 1 0 8 yards 0 1 0 6 hours 7 hours Unit data pertaining to the direct materials for March 2013 are as follows: Actual Beginning Direct Materials Inventory (3/1/2013) Knights Blanket Red wool fabric Black wool fabric Knight logo patches Raider logo patches 50 yards 0 60 0 Raiders Blanket 0 yards 30 0 75 Target Ending Direct Materials Inventory (3/31/2013) Red wool fabric Black wool fabric Knight logo patches Raider logo patches Knights Blanket Raiders Blanket 40 yards 0 yards 0 40 40 0 0 40 Unit cost data for direct-cost inputs pertaining to February 2013 and March 2013 are as follows: Red wool fabric (per yard) Black wool fabric (per yard) Knight logo patches (per patch) Raider logo patches (per patch) Manufacturing labor cost per hour February 2013 (actual) 12 March 2013 (budgeted) $ 13 18 17 10 10 9 11 29 30 Data relating to finished goods inventory for March 2013 are as follows: Beginning inventory in units Knights Blanket Raiders Blanket 23 Beginning inventory in dollars (cost) Target ending inventory in units 18 EA $ 2,880 28 EA 3,611 33 Budgeted sales for March 2013 are 160 units of the Knights blankets and 205 units of the Raiders blankets. The budgeted selling prices per unit in March 2013 are $505 for the Knights blankets and $597 for the Raiders 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 2013. 1. Prepare the following budgets for March 2013: 2. a. b. C. d. e. f. g. Revenues budget Production budget in units Direct material usage budget and direct material purchases budget Direct manufacturing labor budget Manufacturing overhead budget Ending inventories budget (direct materials and finished goods) Cost of goods sold budget Suppose Lakin 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