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:

Pet Luggage accounts for direct materials using a FIFO cost-flow assumption.

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

$105

per setup-hour,

$10

per machine-hour, and

$15

per inspection-hour, respectively. Other information follows:

Input Prices Direct materials Plastic 5 per pound Metal 4 per pound Direct manufacturing labor 10 per direct manufacturing labor hour Input Quantities per Unit of Output \begin{tabular}{lcc} & Cat-allac & Dog-eriffic \\ \hline Direct materials & & \\ Plastic & 4 pounds & 6 pounds \\ Metal & 0.5 pounds & 1 pound \\ Direct manufacturing labor-hours & 3 hours & 5 hours \\ Machine-hours (MH) & 11MH & 19MH \end{tabular} Inventory Information, Direct Materials Sales and Inventorv Information. Finished Goods If necessary, round up to calculate number of batches. Operating (nonmanufacturing) fixed costs for March equal $30,000, half of which are salaries. Salaries are expected to increase 5% in April. Other operating fixed costs will remain the same. The only variable operating cost is sales commission, equal to 1% of sales revenue. 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. Operating (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