Pet Luggage 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.) Pet Luggage accounts for direct materials using a FIFO cost-flow assumption. (Click the icon to view the account information.) Pet Luggage 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. Direct Material Usage Budget in Quantity and Dollars For the Month of April Material Plastic Metal Physical Units Budget Direct materials required for Cat-allac 1,560 lbs. Total Dog-errific 1,000 lbs. 2,560 lbs. Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Plastic Metal To be purchased this period Plastic Metal Direct materials to be used this period i 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 7. Cost of goods sold budget 8. Nonmanufacturing costs budget 9. Budgeted income statement (ignore income taxes) 10. How does preparing the budget help Pet Luggage's management team better manage the company? Print Done i Other information Cost Driver Information Cat-allac Dog-errific Number of units per batch 20 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 $38,000, 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 0 Product Information 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 16 MH Inventory Information, Direct Materials Metal Beginning inventory Target ending inventory Cost of beginning inventory Plastic 270 pounds 380 pounds 1,053 80 pounds 70 pounds 232 $ $ Print Done 0 Account Information 215 320 Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 500 Selling price 215 $ Target ending inventory in units 35 Beginning inventory in units 15 Beginning inventory in dollars $ 1,500 $ 5,580 Pet Luggage uses a FIFO cost-flow assumption for finished-goods inventory. Print Print Done Done