The Chen Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2016, Chen's budget department gathered the following data to prepare budgets for 2017: (Click the icon to view the budget data.) (Click the icon to view the actual and projected direct materials data.) (click the icon to view the projected direct manufacturing labor data.) Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour. Read the resuirements Requirement 1. Prepare the revenues budget (in dollars). i Actual and Projected Direct Materials Data x Revenues Budget For the Year Ending December 31, 2017 Units Price Total Budget Data Projected Direct Manufacturing Labor Data 2017 Projected Sales Product Units Price Thingone 69.000 $ 160 Thingtwo 44,000 $ 258 2017 Inventories in Units Expected Target Product January 1, 2017 December 31, 2017 Thingone 24,000 29,000 Thingtwo 7,000 8,000 The following direct materials are used in the two products: Amount Used per Unit Direct Material Unit Thingone Thingtwo A pound 6 7 B pound 4 5 each 0 3 Projected data for 2017 for direct materials are: Anticipated Expected Target Direct Purchase Inventories Inventories Material Price January 1, 2017 December 31, 2017 A $ 13 36,000 lb. 38,000 lb B 8 31,000 lb. 34.000 lb. 7 9,000 units 12.000 units Projected direct manufacturing labor requirements and rates for 2017 are: Hours per Unit Rate per Hour Product Thingone Thingtwo 4 $ 13 5 $ 18 Print Done Print Done Print Done i X Requirements Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2017: 1. Revenues budget (in dollars) 2. What questions might the CEO ask the marketing manager when reviewing the revenues budget? Explain briefly. 3. Production budget (in units) 4. Direct material purchases budget (in quantities) 5. Direct material purchases budget (in doll 6. Direct manufacturing labor budget (in dollars) 7. Budgeted finished-goods inventory at December 31, 2017 (in dollars) 8. What questions might the CEO ask the production manager when reviewing the production, direct materials, and direct manufacturing labor budgets? 9. How does preparing a budget help Chen Corporation's top management better manage the company? Print Done