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 followingtables:

Input Prices
Direct materials
Plastic	$5	per pound
Metal	$4	per pound
Direct manufacturing labor	$10	per direct manufacturing labor hour

Cost Driver Information
	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 $34,000,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 salescommission, equal to 1% of sales revenue.

Sales and Inventory Information, Finished Goods
	Cat-allac	Dog-eriffic
Expected sales in units	530	265
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 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 perinspection-hour, respectively. Other information follows:

Pet Luggage

uses a FIFO cost-flow assumption for finished-goods inventory.

Input Quantities per Unit of Output
	Cat-allac		Dog-eriffic
Direct materials
Plastic	4	pounds	6	pounds
Metal	0.5	pounds	1	pound
Direct manufacturing labor-hours (DMLH)	3	hours	5	hours
Machine-hours (MH)	11	MH	18	MH

Inventory Information, Direct Materials
	Plastic		Metal
Beginning inventory	290	pounds	50	pounds
Target ending inventory	370	pounds	40	pounds
Cost of beginning inventory	$1,102		$150

Prepare the following for April:

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?