se below information for Questions 1 to 4: rsoy Inc., operates at capacity and makes plastic combs and hairbrushes. Although the combs and brushes are a atching set, they are sold individually and so the sales mix is not 1:1. Yesari Asm Bey, the CFO of Arsoy Inc., is lanning the company's annual budget for fiscal year 2018. Arsoy Inc. accounts for direct materials and ending finishe pods using a FIFO cost flow assumption. Here is information for 2018: Input Prices Direct Materials Plastic Bristes Direct Labor $0.39 per ounce $0.77 per bunch $18 per hour Combs Brushes 5.9 ounces Input Consumption Direct Materials Plastic Bristes Direct Labor Machine Hours (MH) 8.7 ounces 12 bunches 0.27 hour 0.12 MH 0.059 hour 0.028 MH Inventory Plastic Beginning Inventory 1.690 ounces Target Ending Inventory 1,768 ounces Cost of Beginning Inventory $0.37 per ounce Bristles 1.870 bunches 2.222 bunches $0.78 per bunch Sales and Inventory Expected Sales in units Selling Price Target Ending Inventory in units Beginning Inventory in units Beginning Inventory in dollars Combs Brushes 12.900 14.700 $9 $38 1.200 1.490 609 1.270 $2.780 $27.280 Combs are manufactured in batches of 200, and brushes are manufactured in batches of 100. It takes 29 minutes to set p for a batch of combs and 69 minutes to set up for a batch of brushes. Arsoy Ine. uses activity-based costing and has lassified all overhead costs as shown in the following table. Budgeted fixed overhead costs vary with capacity. Arsoy nc. operates at capacity so budgeted fixed overhead cost per unit equals the budgeted fixed overhead costs divided by he budgeted quantities of the cost allocation base. Delivery trucks transport units sold in sizes of 1,000 for both combs nd brushes. Manufacturing Cost Type Budgeted Variable Budgeted Fixed Materials handling $19,235 $22.700 Setup $10,845 $16.650 Processing $11,640 $32.000 Inspection $10.900 $1,570 Cost Driver/Allocation Base Numbers of ounces of plastic used Setup hours Machine hours Number of units produced Non-Manufacturing Cost Type Marketing Distribution Budgeted Variable $0.18 per each $1 of sales revenue $112 per each delivery Budgeted Fixed Cost Driver/Allocation Base Sales revenue Number of deliveries 2-1) Calculate budgeted dollar cost of DM purchase! 2-2) Calculate budgeted dollar cost of ending inventory 2-3) Calculate budgeted cost of goods sold. 2-4) Calculate budgeted operating income