= Homework: Chapter 6 Question 5, P6-37 (book/static) Part 1 of 10 The Chen Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2019, Chen's budget department gathered the following de (Click the icon to view the budget data.) (Click the icon to view the actual and projected direct materials data.) (Click the icon to view the projected direct manufacturing labor data.) Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour. Read the requirements. Actual and Projected Direct Materials Data The following direct materials are used in the two products: Amount Used per Unit Direct Material Unit Thingone Thingtwo A pound 6 7 B pound 4 5 C each 0 3 Budget Data 2020 Projected Sales Projected data for 2020 for direct materials are: Requirement 1. Prepare the revenues budget (in dollars). Product Units Price Anticipated Revenues Budget Thingone For the Year Ending December 31, 2020 Thingtwo 69,000 44,000 $ 160 $ 258 Direct Material Units Price Total 2020 inventories in Units Purchase Price A $ 13 Expected Inventories January 1, 2020 36,000 lb. Target Inventories December 31, 2020 38,000 lb. Thingone Thingtwo Budgeted revenues Expected Target B 8 31,000 lb. Product Thingone January 1, 2020 December 31, 2020 7 9,000 units 34,000 lb. 12,000 units 24,000 29,000 Thingtwo 7,000 8,000 Requirements Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2020: 1. 2. Revenues budget (in dollars) What questions might the CEO ask the marketing manager when reviewing the revenues budget? Explain briefly. Production budget (in units) 3. 4. Direct material purchases budget (in quantities) 5. Direct material purchases budget (in dollars) 6. Direct manufacturing labor budget (in dollars) 7. 8. 9. Budgeted finished-goods inventory at December 31, 2020 (in dollars) What questions might the CEO ask the production manager when reviewing the production, direct materials, and direct manufacturing labor budgets? How does preparing a budget help Chen Corporation's top management better manage the company? Print Done Print Done Projected Direct Manufacturing Labor Data Projected direct manufacturing labor requirements and rates for 2020 are: Product Hours per Unit Rate per Hour Thingone Thingtwo 4 $ 13 5 $ 18 Print Done