Xuereb Manufacturing Company manufactures blue rugs using wool and dye as direct materials. One rug is budgeted to use $38$ skeins of wool at a cost of $ $7$ per skein and $0\mathrm{.}7$ gallons of dye at a cost of $ $5$ per gallon. All other materials are indirect. At the beginning of the$$ year, Xuereb has an inventory of $456$ comma $000$ skeins of wool at a cost of $ $1$ comma $048$ comma $800$ and $3$ comma $400$ gallons of dye at a cost of $ $21$ comma $760.$ Target ending inventory of wool and dye is zero. Xuereb uses the FIFO inventory cost flow method.

$.$

$.$

$.$

Question content area top right

Part $1$

LOADING...$($Click the icon to view the additional$$ information.$)$

It budgets $0\mathrm{.}3$machine$-$hours to dye each skein in the dyeing process. There is no direct manufacturing labor cost for dyeing. Xuereb budgets $48$ direct manufacturing$$ labor$-$hours to weave a rug at a budgeted rate of $ $17$ per hour.

LOADING...$($Click the icon to view the budgeted overhead$$ costs.$)$

Read the requirements LOADING....

Question content area bottom

Part $1$

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