Product Information Input Prices Direct materials Plastic $ 5 per pound $ 4 per pound Metal Direct manufacturing labor $10 per direct manufacturing labor hour Input Quantities per Unit of Output Direct materials Plastic Metal Direct manufacturing labor-hours Machine-hours (MH) Inventory Information, Direct Materials Cat-allac Dog-eriffic 4 pounds 6 pounds 0.5 pounds 1 pound 3 hours 5 hours 11 MH 18 MH Plastic Metal Beginning inventory 260 pounds 80 pounds Target ending inventory 360 pounds 70 pounds Cost of beginning inventory $ 962 $ 240 Print Done Account Information Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 530 265 Selling price S 205 $ 310 Target ending inventory in units 30 10 Beginning inventory in units 10 25 Beginning inventory in dollars S 1,000 $ 4,650 Pet Luggage uses a FIFO cost-flow assumption for finished-goods inventory. Print Done Other information 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. 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. Print Done 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? Print Done 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 $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: (Click the icon to view the other information.) Read the requirements. Requirement 1. Prepare the revenues budget. Revenues Budget For the Month of April Selling price Units Cat-allac Dog-eriffic 530 S 265 Total Total revenues 205 $ 108,650 82,150 310 190,800 Requirement 2. Prepare the production budget in units. Production Budget (in Units) For the Month of April Cat-allac Dog-eriffic Budgeted units sales 530 265 30 10 Add target ending finished goods inventory Total required units 560 275 10 25 Deduct beginning finished goods inventory 550 250 Units of finished goods to be produced Requirement 3. Prepare the direct material usage budget and direct material purchases budget. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. Direct Material Usage Budget in Quantity and Dollars For the Month of April Material Plastic Metal Total Physical Units Budget Direct materials required for Cat-allac lbs. lbs. Dog-errific lbs lbs. Total quantity of direct material to be used lbs. lbs.