P6-40 (similar to) 18 Question Help Pet Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables: E (Click the icon to view the information for the two products.) Pet Gear accounts for direct materials using a FIFO cost-flow assumption. (Click the icon to view the account information.) Pet Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: E: (Click the icon to view the other information.) Read the requirements. Requirement 1. Prepare the revenues budget. Product Information Account Information Revenues Budget For the Month of April Units Selling price 530 $ 205 Total revenues Input Prices Direct materials Sales and Inventory Information, Finished Goods Cat-allac Cat-allac Dog-eriffic Plastic $ 5 per pound Dog-eriffic 265 310 Expected sales in units 530 265 Metal Total $ 4 per pound $ 10 per direct manufacturing labor hour Direct manufacturing labor Input Quantities per Unit of Output Selling price $ 205 $ 310 Target ending inventory in units 30 10 Beginning inventory in units 10 25 Beginning inventory in dollars $ 1,000 $ 4,650 Pet Gear uses a FIFO cost-flow assumption for finished-goods inventory. Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 6 pounds 1 pound 0.5 pounds Other information Print Done Metal Direct manufacturing labor-hours (DMLH) Machine-hours (MH) 3 hours 5 hours 11 MH 17 MH Cost Driver Information Inventory Information, Direct Materials Plastic Metal 270 pounds 70 pounds Beginning inventory Target ending inventory Cost of beginning inventory 410 pounds 60 pounds $ 1,026 $ 231 Cat-allac Dog-errific Number of units per batch 25 10 Setup time per batch 1.50 hours 2.00 hours Inspection time per batch 0.5 hours 0.8 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $36,000, half of which are salaries. Salaries are expected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. Print Done Enter any number in the edit fields and then click Check Answe