Requirement 1. Prepare the revenues budget.Revenues BudgetFor the Month of

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 AnimalGear?'s management team better manage the?company?

Animal Gear 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: Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $120 per setup-hour, $10 per machine-hour, and $10 per inspection-hour, respectively. Other information follows: Product Information Input Prices Direct materials Account Information Sales and Inventory Information, Finished Goods Cat-allac Plastic $ 6 per pound Dog-eriffic Metal $ 5 per pound Expected sales in units 460 255 Direct manufacturing labor $ 12 per direct manufacturing labor hour Selling price $ 210 $ 300 Target ending inventory in units 40 20 Input Quantities per Unit of Output Beginning inventory in units 20 35 Cat-allac Dog-eriffic Beginning inventory in dollars $ 2,000 $ 6,510 Animal Gear uses a FIFO cost-flow assumption for finished-goods inventory. Direct materials Plastic Metal 5 pounds 0.5 pounds 7 pounds 1 pound Direct manufacturing labor-hours Machine-hours (MH) 3 hours 5 hours 12 MH 18 MH Total Inventory Information, Direct Materials Plastic Metal Beginning inventory 270 pounds 80 pounds Target ending inventory 390 pounds 70 pounds Cost of beginning inventory $ 1,053 $ 224 Print Done i Other information Cost Driver Information Cat-allac Number of units per batch 20 Dog-errific 10 Setup time per batch 1.25 hours 2.25 hours Inspection time per batch 0.5 hours 0.5 hour If necessary, round up to calculate number of batches. Operating (nonmanufacturing) fixed costs for March equal $34,000, 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