Prepare the direct material usage budget and direct material purchases budget. Begin with the physical units...

    

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Prepare the direct material usage budget and direct material purchases budget. 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 For the Month of April Physical Units Budget Direct materials required for Cat-allac Dog-errific Total quantity of direct material to be used Plastic Material lbs. lbs. lbs. Metal lbs. lbs. lbs. Total Direct materials Plastic Metal Direct manufacturing labor Input Quantities per Unit of Output Direct materials Plastic Metal 5 per pound $ 4 per pound $10 per direct manufacturing labor hour Direct manufacturing labor-hours (DMLH) Machine-hours (MH) Inventory Information, Direct Materials Beginning inventory Target ending inventory Cost of beginning inventory SA Cat-allac 4 pounds 0.5 pounds 3 hours 11 MH Plastic 250 pounds 390 pounds 950 $ Dog-eriffic 6 pounds 1 pound 5 hours 19 MH Metal 60 pounds 55 pounds 186 Cost Driver Information Cat-allac 25 Dog-errific 10 Number of units per batch Setup time per batch 1.50 hours Inspection time per batch 0.5 hours If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $40,000, half of which are salaries. Salaries are expected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. 2.00 hours 0.8 hour Prepare the direct material usage budget and direct material purchases budget. 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 For the Month of April Physical Units Budget Direct materials required for Cat-allac Dog-errific Total quantity of direct material to be used Plastic Material lbs. lbs. lbs. Metal lbs. lbs. lbs. Total Direct materials Plastic Metal Direct manufacturing labor Input Quantities per Unit of Output Direct materials Plastic Metal 5 per pound $ 4 per pound $10 per direct manufacturing labor hour Direct manufacturing labor-hours (DMLH) Machine-hours (MH) Inventory Information, Direct Materials Beginning inventory Target ending inventory Cost of beginning inventory SA Cat-allac 4 pounds 0.5 pounds 3 hours 11 MH Plastic 250 pounds 390 pounds 950 $ Dog-eriffic 6 pounds 1 pound 5 hours 19 MH Metal 60 pounds 55 pounds 186 Cost Driver Information Cat-allac 25 Dog-errific 10 Number of units per batch Setup time per batch 1.50 hours Inspection time per batch 0.5 hours If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $40,000, half of which are salaries. Salaries are expected to increase 5% in April. Other nonmanufacturing fixed costs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. 2.00 hours 0.8 hour