Q.1 Xuereb Manufacturing Cornpany manufactures blue rugs, using and dye as direct materials. One rug budgeted to use 40 skeins of wool at a cost of $3 per skein and 0.7 gallons of dye at a cost of $7 per gallon, All other materials are indirect. At the begnning ot the year Xuereb has an inventory of 460.000 skeins ot wool at a cost of $1.012,000 and 4,100 gallons of dye at a cost of $24,395. Target ending inventory of wool and dye is zero. Xuereb uses the FIFO inventory cost flow

Requirement l. prepare a direct material budget in both units and dollars.

Bean with the physical units portion, then prepare the cost budget of the direct material usage budget.

Direct Material usage Budget in Quantity and Dollars Material

Requirement. 1. There is no direct manufacturing labor cost for dyeing. Xuereb 70 direct manufacturing labor-hours to weave a rug at a budgeted rate of $ 14 per hour. It budgets 0.3 machine-hours to dye each skein the dyeing.

Requirement. 2

Dyeing weaving

based on 2,520,000MH based on 14700,,000 DMLH

Variable costs

Indirect materials $ 0 $ 15,450,000

Maintenance 6,570,000 5,550,000

Utilities 7,560,000 4,960,000

Fixed Costs

Indirect labor 355,000 1,75500

Depreciation 2,168,000 275,000

Other 735,000 5,820,000

Total Budget Cost $ 17,388,000 $ 33,810,000 .

Please I'm interest in all the calculations you will be using and formula. Thank you.