Pet Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Information for the two products for the month of April is given in the following tables:

Pet Gear 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:

Sales and Inventory Information, Finished Goods
	Cat-allac	Dog-eriffic
Expected sales in units	580	215
Selling price	$190	$260
Target ending inventory in units	45	25
Beginning inventory in units	25	40
Beginning inventory in dollars	$2,500	$7,440

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	1.25	hours	2.00	hours
Inspection time per batch	0.5	hours	0.6	hour

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.

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
8.		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?

 

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ogle Chrome Homework.aspx?homeworkid=618638824&questionid=1&flushed-false&cid=68445 Product Information Direct materials Question 1 DR.An feimilar Plastic Metal Direct manufacturing labor Input Quantities per Unit of Output Direct materials Plastic Metal Direct manufacturing labor-hours (DMLH) Machine-hours (MH) Inventory Information, Direct Materials Beginning inventory Target ending inventory Cost of beginning inventory II e 55 Get more feip 40 Print $ 4 per pound $ 3 per pound $14 per direct manufacturing labor hour 2 A a 87 7 Cat-allac 3 pounds 0.5 pounds 3 hours 13 MH Plastic 250 pounds 370 pounds 1,050 Done PrtScn $ matt Colagiovanm 8 HW Score: 15 30 Dog-eriffic 5 pounds 1 pound 5 hours 21 MH Metal 60 pounds 55 pounds 192 Home 19 G ogle Chrome Homework.aspx?homeworkid=618638824&questionid=1&flushed-false&cid=68445 Product Information Direct materials Question 1 DR.An feimilar Plastic Metal Direct manufacturing labor Input Quantities per Unit of Output Direct materials Plastic Metal Direct manufacturing labor-hours (DMLH) Machine-hours (MH) Inventory Information, Direct Materials Beginning inventory Target ending inventory Cost of beginning inventory II e 55 Get more feip 40 Print $ 4 per pound $ 3 per pound $14 per direct manufacturing labor hour 2 A a 87 7 Cat-allac 3 pounds 0.5 pounds 3 hours 13 MH Plastic 250 pounds 370 pounds 1,050 Done PrtScn $ matt Colagiovanm 8 HW Score: 15 30 Dog-eriffic 5 pounds 1 pound 5 hours 21 MH Metal 60 pounds 55 pounds 192 Home 19 G

Answer rating: 100% (QA)

1Revenues budget Catallac Expected sales 580 units x 190 per unit 110200 Dogeriffic Expected sales 215 units x 260 per unit 55900 Total expected sales revenue 166100 2Production budget in units Catall... View the full answer