P6-40 (similar to) Animal Transport 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: (Click the icon to view the information for the two products.) Animal Transport accounts for direct materials using a FIFO cost-flow assumption. E!! (Click the icon to view the account information.) Requirement 1. Prepare the revenues budget. Revenues Budget For the Month of April Units Selling price Total revenues 500 $ 215 215 320 L Cat-allac Dog-eriffic Total Animal Transport uses an activity-based costing system and classifies overhead into three activity pools: Setup. Processing, and Inspection Activity rates for these activities are $100 per setup-hour, $5 per machine-hour, and $16 per inspection hour, respectively. Other information follows: (Click the icon to view the other information.) Read the requirements. Requirements Prepare the following for April: 1. Revenues budget 2. Production budget in units 3. Direct material usage budget and direct material purchases budget 4. Direct manufacturing labor cost budget 5. Manufacturing overhead cost budgets for each of the three activities 6. Budgeted unit cost of ending finished goods inventory and ending inventories budget Cost of goods sold budget Nonmanufacturing costs budget 9. Budgeted income statement (ignore income taxes) 10. How does preparing the budget help Animal Transport's management team better manage the company? Product Information of Input Prices Direct materials Plastic 4 per pound Metal $ 3 per pound Direct manufacturing labor $ 10 per direct manufacturing labor hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 3 pounds 5 pounds Metal 0.5 pounds 1 pound Direct manufacturing labor-hours (DMLH) 3 hours 5 hours Machine-hours (MH) 10 MH 17 MH Inventory Information, Direct Materials Plastic Metal 70 pounds Beginning inventory Target ending inventory Cost of beginning inventory 270 pounds 400 pounds 1,134 65 pounds 224 $ $ Account Information 215 Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 500 Selling price $ 215 $ 320 Target ending inventory in units 35 Beginning inventory in units 15 Beginning inventory in dollars $ 1,500 $ 5,580 Animal Transport uses a FIFO cost-flow assumption for finished-goods inventory. 30 1 Other information Cost Driver Information Cat-allac Dog-errific Number of units per batch Setup time per batch 1.50 hours 2.00 hours Inspection time per batch 0.5 hours 0.6 hour If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $30,000, 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