Xiang Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted toCick the icon to view the additional information.) use 40 skeins of wool at a cost of $3 per skein and 0.7 gallons of dye at a cost of $7 per gallon. All other materials are indirect. At the beginning of the year Xang has an inventory of 460,000 skeins of wool at a cost of $1,012,000 and 4,100 gallons of dye at a cost of $24,395. Target ending inventory of wool and dye is zero. Xiang uses the FIFO inventory cost flow method. There is no direct manufacturing labor cost for dyeing. Xiang budgets 70 direct manufacturing labor-hours to weave a rug at a budgeted rate of $14 per hour. It budgets 0.3 machine-hours to dye each skein in the dyeing process. EE (Click the icon to view the budgeted overhead costs.) Read the reguirements 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 Total Requirements Data Table 1. Prepare a direct material usage budget in both units and dollars. 2. Calculate the budgeted overhead allocation rates for weaving and dyeing. 3. Calculate the budgeted unit cost of a blue rug for the year 4. Prepare a revenues budget for blue rugs for the year, assuming Xiang sells (a) The following table presents the budgeted overhead costs for the dyeing and weaving cost pools Dyeing Weaving 210,000 or (b) 190,000 blue rugs (that is, at two different sales levels). Calculate the budgeted cost of goods sold for blue rugs under each sales (based on 2,520,000 MH) based on 14,700,000 DMLH) 5. Variable costs 6. Find the budgeted gross margin for blue rugs under each sales assumption 7. What actions might you take as a manager to improve profitability if sales drop to Indirect materials 15,450,000 5,550,000 4,960,000 6,570,000 190,000 blue rugs? 8. Utilities 7,560,000 How might top management at Xiang use the budget developed in requirements 1-6 to better manage the company? Fixed costs 355,000 1,755,000 275,000 5,820,000 33,810,000 Indirect labor PrintDone 2,168,000 735,000 17,388,000 S Total budgeted costs