Xenos Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 40 skeins of wool at a cost of $4 per skein and 0.75 gallons of dye at a cost of $8 per gallon. All other materials are indirect. At the beginning of the year Xenos has an inventory of 462,000 skeins of wool at a cost of $1,062,600 and 4,200 gallons of dye at a cost of $25,200. Target ending inventory of wool and dye is zero. Xenos uses the FIFO inventory cost flow method. (Click the icon to view the additional information.) There is no direct manufacturing labor cost for dyeing. Xenos budgets 55 direct manufacturing labor-hours to weave a rug at a budgeted rate of $15 per hour. It budgets 0.25 machine-hours to dye each skein in the dyeing process. (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 Material Wool Dye Total Physical Units Budget Direct materials required for Blue rugs skeins gal Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) i More Info Xenos blue rugs are very popular and demand is high, but because of capacity constraints the firm will produce only 220,000 blue rugs per year. The budgeted selling price is $2,200 each. There are no rugs in beginning inventory. Target ending inventory of rugs is also zero. Xenos makes rugs by hand, but uses a machine to dye the wool. Thus, overhead costs are accumulated in two cost poolsone for weaving and the other for dyeing. Weaving overhead is allocated to products based on direct manufacturing labor-hours (DMLH). Dyeing overhead is allocated to products based on machine-hours (MH). Print Done The following table presents the budgeted overhead costs for the dyeing and weaving cost pools: Dyeing Weaving (based on 12,100,000 DMLH) (based on 2,200,000 MH) Variable costs Indirect materials $ 0 $ 15,500,000 5,560,000 Maintenance 6,580,000 7,570,000 Utilities 2,480,000 Fixed costs 367,000 1,810,000 Indirect labor Depreciation 2,120,000 743,000 280,000 5,830,000 Other $ 17,380,000 $ 31,460,000 Total budgeted costs Print Done (under a FIFO cost-flow assumption) Wool Dye To be purchased this period Wool Dye Direct materials to be used this period 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.) = Budgeted manufacturing overhead rate Begin by determining the formula, then calculate the budgeted overhead allocation rate for dyeing. (Round your answer to the nearest cent.) Budgeted manufacturing overhead rate Requirement 3. Calculate the budgeted unit cost of a blue rug for the year. (Round your answers to two decimal places.) Cost per Budgeted Input per unit of output unit of input unit cost Wool X X Dye Direct manufacturing labor Dyeing overhead = Weaving overhead = = Total Requirement 4. Calculate the budgeted cost of goods sold for blue rugs assuming sales of 220,000 rugs(For amounts with a $0 balance, make sure to enter "O" in the appropriate cell.) Cost of Goods Sold Budget (a) 220,000 units Beginning finished goods inventory Direct materials used Direct manufacturing labor Manufacturing overhead Cost of goods manufactured Cost of goods available for sale TI Deduct endina finished goods inventory Requirement 4. Calculate the budgeted cost of goods sold for blue rugs assuming sales of 220,000 rugs(For amounts with a $0 balance, make sure to enter "O" in the appropriate cell.) Cost of Goods Sold Budget (a) 220,000 units Beginning finished goods inventory Direct materials used Direct manufacturing labor Manufacturing overhead Cost of goods manufactured Cost of goods available for sale TE Deduct ending finished goods inventory Cost of goods sold