P6-37 (similar to) EQuestion Help The Scaizo Corporation manufactures and sells two products Thingone and Thingtwo. In July 2016,Scazo's budget department gathered the following data to prepare budgets for 2017 EE (Click the icon to view the budget data.) EEE (Click the icon to view the actual and projected direct materials data) EE (Click the icon to view the projected direct manufacturing labor data) Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour Read the requirements Requirement 1. Prepare the revenues budget (in dollars) Revenues Budget For the Year Ending December 31, 2012 Units Price Total Thingone Projected Direct Manufacturing Labor Data Projected direct manufacturing labor requirements and rates for 2017 are: Product ours Thingone Thingtwo per Unit Rate per Hour 15 4 20 i Actual and Projected Direct Materials Data The following direct materials are used in the two products: Amount Used per Unit Direct Material Unit Thingone Thingtwo pound pound 3 each 4 2 Projected data for 2017 for direct materials are: Anticipated Expected Inventories January 1, 2017 35,000 lb. 32,000 lb. Target Inventories December 31, 2017 Direct Purchase Material Price 39,000 lb. 37,000 lb. A s15 7 5,000 units 8,000 units Print Done Requirements Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2017 1. Revenues budget (in dollars) 2. What questions might the CEO ask the marketing manager when reviewing 3. 4. 5. 6. 7. 8. the revenues budget? Explain briefly. Production budget (in units) Direct material purchases budget (in quantities) Direct material purchases budget (in dollars) Direct manufacturing labor budget (in dollars) Budgeted finished-goods inventory at December 31, 2017 (in dollars) What questions might the CEO ask the production manager when reviewing the production, direct materials, and direct manufacturing labor budgets? How does preparing a budget help Scalzo Corporation's top management 9