Xiao Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is A Click the icon to view the additional information. budgeted to use 32 skeins of wool at a cost of $22 per skein and 0.75 gallons of dye at a cost of $5 per There is no direct manufacturing labor cost for dyeing. Xiao budgets 70 direct manufacturing labor-hours gallon. All other materials are indirect. At the beginning ofthe year Xiao has an inventory of 446,000 to weave a rug at a budgeted rate of $12 per hour. It budgets 0.25 machine-hours to dye each skein in the skeins of wool at a cost of S802,800 and 3,900 gallons of dye at a cost of $22,620. Target ending dyeing process. inventory of wool and dye is zero. Xiao uses the FIFO inventory cost flow method. (Click the icon to view the budgeted overhead costs.) Read the requirements