Direct materials Input Quantities per Unit of Output Plastic Metal Direct manufacturing labor-hours (DMLH) Machine-hours (MH) D 3 pounds 5 pounds 0,5 pound 1 pound 3 hours 5 hours 13 MH 20 MH Inventory Information, Direct Materials Beginning inventory Target ending inventory Cost of beginning inventory Plastic 230 pounds Metal 70 pounds 400 pounds 65 pounds $874 $224 PL Company accounts for direct materials using a FIFO cost flow assumption. Sales and Inventory Information, Finished Goods D Expected sales in units 580 240 Selling price $ 190 $275 Target ending inventory in units 45 25 Beginning inventory in units 25 40 Beginning inventory in dollars $2.500 $7.440 PL Company uses a FIFO cost flow assumption for finished goods inventory. PL Company uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $130 per setup-hour, $5 per Machine-Hour and $20 per inspection-hour, respectively. Other information follows: Cost Driver Information D Number of units per batch Setup time per batch Inspection time per batch 25 13 1,25 hours 0,5 hour 2 hours 0,6 hour Nonmanufacturing fixed costs for July equal $32.000, of which half are salaries. Salaries are expected to increase 5% in August. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. Prepare the following for August (Show your calculations): a) Direct material usage budget and direct material purchases budget (10 p) b) Manufacturing overhead cost budgets for each of the three activities (15 p) c) Budgeted unit cost of ending finished goods inventory and ending inventories budget (15 p)