Xander Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 36 skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $6 per gallon. All other materials are indirect. At the beginning of the year Xander has an inventory of 458,000 skeins of wool at a cost of $961,800 and 4,000 gallons of dye at a cost of $23,680. Target ending inventory of wool and dye is zero. Xander uses the FIFO inventory cost flow method. i (Click the icon to view the additional information.) There is no direct manufacturing labor cost for dyeing. Xander budgets 62 direct manufacturing labor-hours to weave a rug at a budgeted rate of $13 per hour. It budgets 0.2 machine-hours to dye each skein in the dyeing process. (Click the icon to view the budgeted overhead costs.) i Data Table Dyeing (based on 1,440,000 MH) Weaving (based on 12,400,000 DMLH) Variable costs Indirect materials $ OS Maintenance 6,560,000 15,400,000 5,540.000 2.890.000 Utilities 7,550.000 Fixed costs Indirect labor Depreciation Other 347,000 2.100.000 723.000 1,700.000 274,000 5.816.000 31.620.000 $ 17,280 000 $ Total budgeted costs Print Done Xander Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 36 skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $6 per gallon. All other materials are indirect. At the beginning of the year Xander has an inventory of 458,000 skeins of wool at a cost of $961,800 and 4,000 gallons of dye at a cost of $23,680. Target ending inventory of wool and dye is zero. Xander uses the FIFO inventory cost flow method. i (Click the icon to view the additional information.) There is no direct manufacturing labor cost for dyeing. Xander budgets 62 direct manufacturing labor-hours to weave a rug at a budgeted rate of $13 per hour. It budgets 0.2 machine-hours to dye each skein in the dyeing process. (Click the icon to view the budgeted overhead costs.) i Data Table Dyeing (based on 1,440,000 MH) Weaving (based on 12,400,000 DMLH) Variable costs Indirect materials $ OS Maintenance 6,560,000 15,400,000 5,540.000 2.890.000 Utilities 7,550.000 Fixed costs Indirect labor Depreciation Other 347,000 2.100.000 723.000 1,700.000 274,000 5.816.000 31.620.000 $ 17,280 000 $ Total budgeted costs Print Done