Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. b. Prepare the production budget in units. Production Budget For the Month of March c. 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. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Cost Budget Available from beginning direct materials inventory Now prepare March's direct material purchases budget. d. Prepare the direct manufacturing labor costs budget. (Abbreviation used: DMLH = Direct manufacturing labor hours) Direct Manufacturing Labor Costs Budget Ivial e. Prepare the manufacturing overhead costs budget. Start by selecing the formula, and calculating the budgeted variable manufacturing overhead costs for March. Variable manufacturing =overheadcosts= Now prepare the total manufacturing overhead cost budgets by entering the appropriate amounts then calculate the total manufacturing overhead costs. f. Prepare the ending inventories budget (direct materials and finished goods). Complete the information below by entering the appropriate amounts to calculate the unit costs of ending finished goods inventory for the Broncos blankets and Rams blankets. Remember the fixed manufacturing overhead rate is the total fixed manufacturing overhead divided b: the total direct manufacturing labor hours. Unit Costs of Ending Finished Goods Inventory March 31, 2020 Now prepare the ending inventories budget. Requirement 2. Suppose Lee Specialties decides to incorporate continuous improvement into its budgeting process. Select two areas wher it could incorporate continuous improvement into the budget schedules in requirement 1. Lee Specialties can continually improve variable manufacturing overhead by budgeting more efficient use of the allocation base. To continually improve the direct material usage budget, the company should verify that the beginning inventory is as low as possible to decrease the materials used during production. By increasing the target ending finished goods inventory, Lee Specialties will reduce the production budget therefore continually improve the direct material purchases budget. Direct manufacturing labor can incorporate continuous improvement by revising the budgeted usage of 11 hours and 12 hours on a monthly basis. Only by reducing the budget on a monthly basis for the amounts of fixed overhead can Lee Specialties continually improve fixed manufacturing overhead. 1: Additional Blanket Information The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams are as follow: - Broncos, with red blankets and the Broncos logo - Rams, with black blankets and the Rams logo Also, the black blankets are slightly larger than the red blankets. 2: Budgeted Direct-Cost Inputs The budgeted direct-cost inputs for each product in 2020 are as follows: 3: Direct Materials Data pertaining to the direct materials for March 2020 are as follows: Taraet Endina Direct Materials Inventorv. March 31. 2020 4: Direct-Cost Inputs Unit cost data for direct-cost inputs pertaining to February 2020 and March 2020 are as follows: 5: Manufacturing Overhead Information The budgeted variable manufacturing overhead rate for March 2020 is $24 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $47,700. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. 6: Finished Goods Inventory Data relating to finished goods inventory for March 2020 are as follows: 7: Sales and Other Information Budgeted sales for March 2020 are 210 units of the Broncos blankets and 230 units of the Rams blankets. The budgeted selling prices per unit in March 2020 are $1,124 for the Broncos blankets and $1,215 for the Rams blankets. Assume the following in your answer: - Work-in-process inventories are negligible and ignored. - Direct materials inventory and finished goods inventory are costed using the FIFO method. - Unit costs of direct materials purchased and finished goods are constant in March 2020. 8: Requirements 1. Prepare the following budgets for March 2020 : a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor costs budget e. Manufacturing overhead costs budget f. Ending inventories budget (direct materials and finished goods) g. Cost of goods sold budget 2. Suppose Lee Specialties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it couls incorporate continuous improvement into the budget schedules in requirement 1. The budgeted variable manufacturing overhead rate for March 2020 is $24 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $47,700. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. 6: Finished Goods Inventory Data relating to finished goods inventory for March 2020 are as follows: 7: Sales and Other Information Budgeted sales for March 2020 are 210 units of the Broncos blankets and 230 units of the Rams blankets. The budgeted selling prices per unit in March 2020 are $1,124 for the Broncos blankets and $1,215 for the Rams blankets. Assume the following in your answer: - Work-in-process inventories are negligible and ignored. - Direct materials inventory and finished goods inventory are costed using the FIFO method. - Unit costs of direct materials purchased and finished goods are constant in March 2020. 8: Requirements 1. Prepare the following budgets for March 2020 : a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor costs budget e. Manufacturing overhead costs budget f. Ending inventories budget (direct materials and finished goods) g. Cost of goods sold budget 2. Suppose Lee Specialties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it coult incorporate continuous improvement into the budget schedules in requirement 1. Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. b. Prepare the production budget in units. Production Budget For the Month of March c. 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. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Cost Budget Available from beginning direct materials inventory Now prepare March's direct material purchases budget. d. Prepare the direct manufacturing labor costs budget. (Abbreviation used: DMLH = Direct manufacturing labor hours) Direct Manufacturing Labor Costs Budget Ivial e. Prepare the manufacturing overhead costs budget. Start by selecing the formula, and calculating the budgeted variable manufacturing overhead costs for March. Variable manufacturing =overheadcosts= Now prepare the total manufacturing overhead cost budgets by entering the appropriate amounts then calculate the total manufacturing overhead costs. f. Prepare the ending inventories budget (direct materials and finished goods). Complete the information below by entering the appropriate amounts to calculate the unit costs of ending finished goods inventory for the Broncos blankets and Rams blankets. Remember the fixed manufacturing overhead rate is the total fixed manufacturing overhead divided b: the total direct manufacturing labor hours. Unit Costs of Ending Finished Goods Inventory March 31, 2020 Now prepare the ending inventories budget. Requirement 2. Suppose Lee Specialties decides to incorporate continuous improvement into its budgeting process. Select two areas wher it could incorporate continuous improvement into the budget schedules in requirement 1. Lee Specialties can continually improve variable manufacturing overhead by budgeting more efficient use of the allocation base. To continually improve the direct material usage budget, the company should verify that the beginning inventory is as low as possible to decrease the materials used during production. By increasing the target ending finished goods inventory, Lee Specialties will reduce the production budget therefore continually improve the direct material purchases budget. Direct manufacturing labor can incorporate continuous improvement by revising the budgeted usage of 11 hours and 12 hours on a monthly basis. Only by reducing the budget on a monthly basis for the amounts of fixed overhead can Lee Specialties continually improve fixed manufacturing overhead. 1: Additional Blanket Information The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams are as follow: - Broncos, with red blankets and the Broncos logo - Rams, with black blankets and the Rams logo Also, the black blankets are slightly larger than the red blankets. 2: Budgeted Direct-Cost Inputs The budgeted direct-cost inputs for each product in 2020 are as follows: 3: Direct Materials Data pertaining to the direct materials for March 2020 are as follows: Taraet Endina Direct Materials Inventorv. March 31. 2020 4: Direct-Cost Inputs Unit cost data for direct-cost inputs pertaining to February 2020 and March 2020 are as follows: 5: Manufacturing Overhead Information The budgeted variable manufacturing overhead rate for March 2020 is $24 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $47,700. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. 6: Finished Goods Inventory Data relating to finished goods inventory for March 2020 are as follows: 7: Sales and Other Information Budgeted sales for March 2020 are 210 units of the Broncos blankets and 230 units of the Rams blankets. The budgeted selling prices per unit in March 2020 are $1,124 for the Broncos blankets and $1,215 for the Rams blankets. Assume the following in your answer: - Work-in-process inventories are negligible and ignored. - Direct materials inventory and finished goods inventory are costed using the FIFO method. - Unit costs of direct materials purchased and finished goods are constant in March 2020. 8: Requirements 1. Prepare the following budgets for March 2020 : a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor costs budget e. Manufacturing overhead costs budget f. Ending inventories budget (direct materials and finished goods) g. Cost of goods sold budget 2. Suppose Lee Specialties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it couls incorporate continuous improvement into the budget schedules in requirement 1. The budgeted variable manufacturing overhead rate for March 2020 is $24 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $47,700. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. 6: Finished Goods Inventory Data relating to finished goods inventory for March 2020 are as follows: 7: Sales and Other Information Budgeted sales for March 2020 are 210 units of the Broncos blankets and 230 units of the Rams blankets. The budgeted selling prices per unit in March 2020 are $1,124 for the Broncos blankets and $1,215 for the Rams blankets. Assume the following in your answer: - Work-in-process inventories are negligible and ignored. - Direct materials inventory and finished goods inventory are costed using the FIFO method. - Unit costs of direct materials purchased and finished goods are constant in March 2020. 8: Requirements 1. Prepare the following budgets for March 2020 : a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget d. Direct manufacturing labor costs budget e. Manufacturing overhead costs budget f. Ending inventories budget (direct materials and finished goods) g. Cost of goods sold budget 2. Suppose Lee Specialties decides to incorporate continuous improvement into its budgeting process. Describe two areas where it coult incorporate continuous improvement into the budget schedules in requirement 1