Lakin Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. (Click the icon to view additional information.) (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.) Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. Additional Blanket Information Manufacturing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct manufacturing labor-hours per blanket. 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. Revenues Budget For the Month of Units Selling Budgeted Direct-Cost Inputs Broncos Blankets Rams Blankets 150 $ 200 Total (Click the icon to view the overhead information.) (Click the icon to view the finished goods inventory.) icon to view additional information.) Direct-Cost Inputs Unit cost data for direct-cost inputs pertaining to February 2020 and March 2020 are as follows: March 2020 (budgeted) February 2020 (actual) Red wool fabric (per yard) Black wool fabric (per yard) Broncos logo patches (per patch) Rams logo patches (per patch) Manufacturing labor cost per hour S 11 $ 12 16 15 9 9 8 28 10 29 Sales and Other Information The budgeted direct-cost inputs for each product in 2020 are as follows: Broncos Blanket Rams Blanket Red wool fabric 6 yards 0 yards Black wool fabric 0 yards 7 yards Broncos logo patches 1 0 Rams logo patches 1 Direct manufacturing labor 5 hours 6 hours Budgeted sales for March 2020 are 150 units of the Broncos blankets and 200 units of the Rams blankets. The budgeted selling prices per unit in March 2020 are $393 for the Broncos blankets and $474 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 2020. - Manufacturing Overhead Information The budgeted variable manufacturing overhead rate for March 2020 is $18 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $16,480. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Finished Goods Inventory Data relating to finished goods inventory for March 2020 are as follows: Broncos Blanket Rams Blanket Beginning inventory in units Beginning inventory in dollars (cost) 16 21 $ 2,400 $ 3,276 swer Target ending inventory in units 26 31 Lakin Specialties m (Click the icon (Click the icon t Requirements (Click the icon 1. (Click the icon t Prepare the following budgets for March 2020: a. Revenues budget b. Production budget in units c. d. e. f. Ending inventories budget (direct materials and finished goods) Requirement 1. Pre a. Prepare the rever Direct material usage budget and direct material purchases budget Direct manufacturing labor costs budget Manufacturing overhead costs budget g. Cost of goods sold budget 2. Suppose Lakin Specialities 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. Broncos Blankets Rams Blankets Total Sales and Other Information Print Done ing overhead (both variable and fixed) is allocated to each blanket on the basis of budgeted direct Xing labor-hours per blanket. the icon to view the overhead information.) the icon to view the finished goods inventory.) the icon to view additional information.) equirements. Manufacturing Overhead Information The budgeted variable manufacturing overhead rate for March 2020 is $18 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $16,480. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Budgeted sales for March 2020 are 150 units of the Broncos blankets and 200 units of the Rams blankets. The budgeted selling prices per unit in March 2020 are $393 for the Broncos blankets and $474 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 2020. Finished Goods Inventory Print Done Print Done Data relating to finished goods inventory for March 2020 are as follows: Broncos Blanket Rams Blanket Beginning inventory in units Beginning inventory in dollars (cost) Target ending inventory in units 16 21 $ 2,400 $ 3,276 26 31 wer