12-36 Comprehensive budgeting problem; activity-based costing, operating and financial budgets. Tyva makes a very popular undyed cloth sandal in one style, but in Regular and Deluxe. The Regular sandals have cloth soles and the Deluxe sandals have cloth-covered wooden soles. Tyva is preparing its budget for June 2013 and has estimated sales based on past experience. Other information for the month of June follows: Input Prices Direct materials Cloth Wood $5.25 per yard $7.50 per board foot $15 per direct manufacturing labor-hour Direct manufacturing labor Input Quantities per Unit of Output (per pair of sandals) Regular Deluxe Direct materials Cloth 1.3 yards1.5 yards Wood 2 b.f Direct manufacturing labor-hours (DMLH) 5 hours 7 hours 3 hours Setup-hours per batch 2 hours