$[$:$//]$: Activity$-$based budgeting. The Georgetown store of Jiffy Mart, a chain of small

neighborhood convenience stores, is preparing its activity$-$based budget for January $2013.$ Jiffy Mart has three

product categories: soft drinks $(35\%$ of cost of goods sold $[$COGS$)),$ fresh snacks $(25\%$ of COGS$),$ and pack$-$

aged food $(40\%$ of COGS$).$ The following table shows the four activities that consume indirect resources at the

Georgetown store, the cost drivers and their rates, and the cost$-$driver amount budgeted to be consumed by

each activity in January $2013.$

January $2013$

Budgeted

Cost$-$Driver

Rate

$

$45$

$

$41$

$$10\mathrm{.}50$

$ $0\mathrm{.}09$

January $2013$ Budgeted

Amount of Cost Driver Used

Soft

Drinks

$14$

$12$

$16$

$4,600$

Fresh

Snacks

$24$

$62$

$172$

$34,200$

Cost Driver

Number of purchase orders

Number of d$...$

$[$:$//]$: $12-23$ Budget schedules for a manufacturer. Lame Specialties manufactures, among

other things, woolen blankets for the athletic teams of the two local high schools. The company sews the blankets

from fabric and sews on a logo patch purchased from the licensed logo store site. The teams are as follows:

Knights, with red blankets and the Knights logo

Raiders, with black blankets and the Raider logo

Also, the black blankets are slightly larger than the red blankets.

The budgeted direct$-$cost inputs for each product in $2013$ are as follows:

Knights Blanket

$4$ yards

O

$1$

O

$3$ hours

Raiders Blanket

$0$ yards

$5$

O

$1$

$4$ hours

Red wool fabric

Black wool fabric

Knight logo patches

Raider logo patches

Direct manufacturing labor

data pertaining to the direct materials for March $2013$ are as follows:

Actual Beginning Direct Materials Inventory $(3/1/2013)$

Knights Blanket

Raiders Blanket

$0$g yards

$35$ yards

Red wool fabric

Black wool fabric

$15$

$0$

$45$

Knight logo patches

$0$

$60$

Raider logo patches

$0$

Target Ending Direct Materials Inventory $(3/31/2013)$

Knights Blanket

Raiders Blanket

$0$ yards

Red wool fabric

$25$ yards

$25$

Black woo fabric

$0$

Knight logo patches

$25$

$0$

Raider logo patches

$25$

$0$

Unit cost data for direct$-$cost inputs pertaining to February $2013$ and March $2013$ are as follows:

February $2013($actual$)$

$

$9$

$12$

March $2013($budgeted$)$

$$10$

$11$

$7$

Red wool fabric $($per yard$)$

Black wool fabric $($per yard$)$

Knight logo patches $($per patch$)$

Raider logo patches $($per patch$)$

Manufacturing labor cost per hour

$26$

$27$

Manufacturing overhead $($both variable and fixed$)$ is allocated to each blanket on the basis of budgeted direct

manufacturing labor$-$hours per blanket. The budgeted variable manufacturing overhead rate for March $2013$ is

$$16$ per direct manufacturing labor$-$hour. The budgeted fixed manufacturing overhead for March $2013$ is $$14,640$

Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.

Data relating to finished goods inventory for March $2013$ are as follows:

Knights Blankets

$12$

$$1,440$

$22$

Raiders Blankets

$17$

$$2,550$

$27$

Beginning inventory in units

Beginning inventory in dollars $($cost$)$

Target ending inventory in units

Budgeted sales for March $2013$ are $130$ units of the Knights blankets and $190$ units of the Raiders blankets.

The budgeted selling prices per unit in March $2013$ are $$229$ for the Knights blankets and $$296$ for the Raiders

blankets. Assume the following in your answer:

Work$-$in$-$process inventories are negligible and ignored

Direct materials inventory and finished goods inventory are costed using the FIF$0$ method.

Unit costs of direct materials purchased and finished goods are constant in March $2013.$

$1.$ Prepare the following budgets for March $2013$:

a$.$ Revenues budget

b$.$Production budget in units

c$.$ Direct material usage budget and direct material purchases budget

d$.$ Direct manufacturing labr

e$.$ Manufacturing overhea

f$.$ Ending inventories bud,

$.$als and finished goods$)$

g$.$ Cost of goods sold budge