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Xander Manufacturing Company manufactures blue rugs, using wool and (1) (Click the icon to view the additional information.) dye as direct materials. One rug is
Xander Manufacturing Company manufactures blue rugs, using wool and (1) (Click the icon to view the additional information.) dye as direct materials. One rug is budgeted to use 43 skeins of wool at a cost of $6 per skein and 0.8 gallons of dye at a cost of $5 per gallon. All There is no direct manufacturing labor cost for dyeing. Xander other materials are indirect. At the beginning of the year Xander has an budgets 40 direct manufacturing labor-hours to weave a rug at a inventory of 454,000 skeins of wool at a cost of $998,800 and 3,500 budgeted rate of $16 per hour. It budgets 0.2 machine-hours to gallons of dye at a cost of $22,050. Target ending inventory of wool and dye each skein in the dyeing process. dye is zero. Xander uses the FIFO inventory cost flow method. (Click the icon to view the budgeted overhead costs.) Read the requirements. Requirement 1. Prepare a direct material usage budget in both units and dollars. 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 Requirement 2. Calculate the budgeted overhead allocation rates for weaving and dyeing. Begin by determining the formula, then calculate the budgeted overhead allocation rate for weaving. (Round your answer to the nearest cent)
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