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 s. lbs. Dog-errific lbs. lbs. Total quantity of direct material to be used lbs. lbs. Direct materials Plastic $ 5 per pound Metal $ 4 per pound $ 10 per direct manufacturing labor hour Direct manufacturing labor Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 0.5 pounds 6 pounds 1 pound Metal 3 hours 5 hours Direct manufacturing labor-hours (DMLH) Machine-hours (MH) 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 250 pounds Beginning inventory Target ending inventory Cost of beginning inventory 60 pounds 55 pounds 390 pounds $ 950 $ 186 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 $40,000, 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 sales commission, equal to 1% of sales revenue. 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 s. lbs. Dog-errific lbs. lbs. Total quantity of direct material to be used lbs. lbs. Direct materials Plastic $ 5 per pound Metal $ 4 per pound $ 10 per direct manufacturing labor hour Direct manufacturing labor Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 0.5 pounds 6 pounds 1 pound Metal 3 hours 5 hours Direct manufacturing labor-hours (DMLH) Machine-hours (MH) 11 MH 19 MH Inventory Information, Direct Materials Plastic Metal 250 pounds Beginning inventory Target ending inventory Cost of beginning inventory 60 pounds 55 pounds 390 pounds $ 950 $ 186 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 $40,000, 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 sales commission, equal to 1% of sales revenue