Input Prices Direct materials Plastic $ 5 per pound Metal $ 4 per pound Direct manufacturing labor $10 per direct manufacturing labor hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 4 pounds 6 pounds Metal 0.5 pounds 1 pound Direct manufacturing labor-hours 3 hours 5 hours Machine-hours (MH) 11 MH 17 MH Inventory Information, Direct Materials Plastic Metal Beginning inventory Target ending inventory Cost of beginning inventory 260 pounds 350 pounds 1,092 80 pounds 70 pounds $ $ 256 Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units 530 265 Selling price $ 205 $ 310 Target ending inventory in units 30 10 Beginning inventory in units 10 25 Beginning inventory in dollars $ 1,000 $ 4,650 $ Pet Gear uses a FIFO cost-flow assumption for finished-goods inventory. Cost Driver Information Cat-allac Dog-errific Number of units per batch 25 10 Setup time per batch 1.50 hours 2.00 hours Inspection time per batch 0.5 hours 0.8 hour If necessary, round up to calculate number of batches. Operating (nonmanufacturing) fixed costs for March equal $36,000, half of which are salaries. Salaries are expected to increase 5% in April. Other operating fixed costs will remain the same. The only variable operating cost is sales commission, equal to 1% of sales revenue. Prepare the following for April: 1. Revenues budget 2. Production budget in units 3. Direct material usage budget and direct material purchases budget 4. Direct manufacturing labor cost budget 5. Manufacturing overhead cost budgets for each of the three activities 6. Budgeted unit cost of ending finished goods inventory and ending inventories budget 7. Cost of goods sold budget Operating (nonmanufacturing) costs budget 9. Budgeted income statement (ignore income taxes) 10. How does preparing the budget help Pet Gear's management team better manage the company