Xiang Manufacturing Company manufactures blue rugs, using wool and dye as Click the icon to view the additional information.) direct materials One rug is budgeted to use 38 skeins of wool at a cost of $4 per skein and 0.7 gallons of dye at a cost of $7 per gallon All other materials are There is no direct manufacturing labor cost for dyeing, Xiang budgets 52 direct indirect At the beginning of the year Xiang has an inventory of 450 000 skuins of manufacturing labor hours to weave a rugat a budgeted rate of $14 per hour it wool at a cost of $855,000 and 3,700 gallons of dye at a cost of $21,830 Torget budgets 03 machine houts to dye gach skein in the dyeing process ending inventory of wool and dye is zero Xiang uses the FIFO inventory cost flow Click the icon to view the budgeted overhead costs) method Read the requirements Requirement 1. Propore a direct material usago budget in both unts 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 skins WALL 8 Cost Budget Available from beginning direct materials inventory (under a FIFO Cost low assumption) Wool Dyo Choose from any list or enter any number in the input fields and then continue to the next question 1. 2. 3. 4. 5. Prepare a direct material usage budget in both units and dollars. Calculate the budgeted overhead allocation rates for weaving and dyeing. Calculate the budgeted unit cost of a blue rug for the year Prepare a revenues budget for blue rugs for the year, assuming Xiang sells (a) 225,000 or (b) 210,000 blue rugs (that is, at two different sales levels) Calculate the budgeted cost of goods sold for blue rugs under each sales assumption Find the budgeted gross margin for blue rugs under each sales assumption What actions might you take as a manager to improve profitability if sales drop to 210,000 blue rugs? How might top management at Xiang use the budget developed in requirements 1-6 to better manage the company? 6. 7. 8. Xiang Manufacturing Company manufactures blue rugs, using wool and dye as Click the icon to view the additional information.) direct materials One rug is budgeted to use 38 skeins of wool at a cost of $4 per skein and 0.7 gallons of dye at a cost of $7 per gallon All other materials are There is no direct manufacturing labor cost for dyeing, Xiang budgets 52 direct indirect At the beginning of the year Xiang has an inventory of 450 000 skuins of manufacturing labor hours to weave a rugat a budgeted rate of $14 per hour it wool at a cost of $855,000 and 3,700 gallons of dye at a cost of $21,830 Torget budgets 03 machine houts to dye gach skein in the dyeing process ending inventory of wool and dye is zero Xiang uses the FIFO inventory cost flow Click the icon to view the budgeted overhead costs) method Read the requirements Requirement 1. Propore a direct material usago budget in both unts 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 skins WALL 8 Cost Budget Available from beginning direct materials inventory (under a FIFO Cost low assumption) Wool Dyo Choose from any list or enter any number in the input fields and then continue to the next question 1. 2. 3. 4. 5. Prepare a direct material usage budget in both units and dollars. Calculate the budgeted overhead allocation rates for weaving and dyeing. Calculate the budgeted unit cost of a blue rug for the year Prepare a revenues budget for blue rugs for the year, assuming Xiang sells (a) 225,000 or (b) 210,000 blue rugs (that is, at two different sales levels) Calculate the budgeted cost of goods sold for blue rugs under each sales assumption Find the budgeted gross margin for blue rugs under each sales assumption What actions might you take as a manager to improve profitability if sales drop to 210,000 blue rugs? How might top management at Xiang use the budget developed in requirements 1-6 to better manage the company? 6. 7. 8