More info Xiang blue rugs are very popular and demand is high, but because of capacity constraints the firm will produce only 255,000 blue rugs per year. The budgeted selling price is $2,300 each. There are no rugs in beginning inventory. Target ending inventory of rugs is also zero. Xiang makes rugs by hand, but uses a machine to dye the wool. Thus, overhead costs are accumulated in two cost pools-one for dyeing and the other for weaving. Dyeing overhead is allocated to products based on machine-hours (MH). Weaving overhead is allocated to products based on direct manufacturing labor-hours (DMLH). The following table presents the budgeted overhead costs for the dyeing and weaving cost pools: wool at a cost of $998,800 and 3,500 gallons of dye at a cost of $22,050. Target ending inventory of wool and dye is zero. Xiang uses the FIFO inventory cost manufacturing labor-hours to weave a rug at a budgeted rate of $16 per hour. flow method. 2 (Click the icon to view the budgeted overhead costs.) Read the requirements 3. Requirement 1. Prepare a direct material usage budget in both units and dollars Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. Direct Material Usaqe Budqet in Quantity and Dollars Requirement 5 . Calculate the budgeted cost of goods sold for blue rugs under each sales assumption. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Begin by (a) completing the cost of goods sold budget assuming sales of 255,000 rugs, and then (b) complete a cost of goods sold budget assuming sales of 240,000 rugs. Requirement 6 . Find the budgeted gross margin for blue rugs under each sales assumption. Begin by (a) finding the budgeted gross margin assuming sales of 255,000 rugs, and then (b) finding the budgeted gross margin assuming sales of 240,000 rugs. Requirement 7 . What actions might you take as a manager to improve profitability if sales drop to 240,000 blue rugs? If sales drop to 240,000 blue rugs, Xiang should look to (5) fixed costs and produce ( to reduce variable costs and inventory costs Requirement 8. How might top management at Xiang use the budget developed in requirements 1-6 to better manage the company? (Select all that apply.) 1(7) 1: More Info manufacturing labor-hours (DMLH). 2: Data Table The following table presents the budgeted overhead costs for the dyeing and weaving cost pools: 3: Requirements 1. Prepare a direct material usage budget in both units and dollars. 2. Calculate the budgeted overhead allocation rates for dyeing and weaving. 3. Calculate the budgeted unit cost of a blue rug for the year. 4. Prepare a revenues budget for blue rugs for the year, assuming Xiang sells (a) 255,000 or (b) 240,000 blue rugs (that is, at two different sales levels). 5. Calculate the budgeted cost of goods sold for blue rugs under each sales assumption. 6. Find the budgeted gross margin for blue rugs under each sales assumption. 7. What actions might you take as a manager to improve profitability if sales drop to 240,000 blue rugs? 8. How might top management at Xiang use the budget developed in requirements 16 to better manage the company? 3: Requirements 1. Prepare a direct material usage budget in both units and dollars. 2. Calculate the budgeted overhead allocation rates for dyeing and weaving. 3. Calculate the budgeted unit cost of a blue rug for the year. 4. Prepare a revenues budget for blue rugs for the year, assuming Xiang sells (a) 255,000 or (b) 240,000 blue rugs (that is, at two different sales levels). 5. Calculate the budgeted cost of goods sold for blue rugs under each sales assumption. 6. Find the budgeted gross margin for blue rugs under each sales assumption. 7. What actions might you take as a manager to improve profitability if sales drop to 240,000 blue rugs? 8. How might top management at Xiang use the budget developed in requirements 1-6 to better manage the company? (1) Machine hours (2) 0 (3) Directmanuf.laborDirectmanuf.laborhoursDirectmaterialsMachinehoursOutputunitsproducedTotalbudgetedoverheadcosts (4) (5) increase (6) less Look for ways to improve quality and efficiency while also increasing input prices. Coordinate and communicate across different parts of the organization Motivate managers and employees to increase inventory and achieve higher costs. Create a framework for judging performance. Look for ways to increase sales and improve quality, efficiency and input prices. (8) 0 Look for ways to improve quality and efficiency while also increasing input prices. coordinate and communicate across different parts of the organization. Motivate managers and employees to increase inventory and achieve higher costs. Create a framework for judging performance Look for ways to increase sales and improve quality, efficiency and input prices. (9) 0 Look for ways to improve quality and efficiency while also increasing input prices. Coordinate and communicate across different parts of the organization. Motivate managers and employees to increase inventory and achieve higher costs. Create a framework for judging performance. Look for ways to increase sales and improve quality, efficiency and input prices