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 $130 per setup-hour, $5 per machine-hour, and $20 per inspection-hour, respectively. Other information follows: |(Click the icon to view the other information.) ..... Requirements Requirement 1. Prepare the revenues budget. Revenues Budget For the Month of April Units Selling price Total revenues Cat-allac 580 $ 190 Dog-eriffic 215 260 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? Total Product Information Input Prices Direct materials Plastic Metal 4 per pound 3 per pound 14 per direct manufacturing labor hour Direct manufacturing labor $ Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 3 pounds 0.5 pounds 5 pounds 1 pound Metal 3 hours 5 hours Direct manufacturing labor-hours (DMLH) Machine-hours (MH) 13 MH 21 MH Inventory Information, Direct Materials Plastic Metal Beginning inventory Target ending inventory 240 pounds 400 pounds 70 pounds 60 pounds Account Information Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic 580 215 $ 190 $ 260 Expected sales in units Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 45 25 25 40 $ 2,500 $ 7,440 Pet Luggage uses a FIFO cost-flow assumption for finished-goods inventory. Cost Driver Information Cat-allac Dog-errific Number of units per batch 25 10 1.25 hours 2.00 hours Setup time per batch 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 $32,000, 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