Product Information Input Prices Direct materials Plastic $ $ $ 4 per pound Metal 3 per pound Direct manufacturing labor 14 per direct manufacturing labor hour Input Quantities per Unit of Output Cat-allac Dog-eriffic Direct materials Plastic 3 pounds 0.5 pounds 3 hours 5 pounds 1 pound 5 hours Metal Direct manufacturing labor-hours (DMLH) Machine-hours (MH) Inventory Information, Direct Materials 13 MH 21 MH Beginning inventory Target ending inventory Cost of beginning inventory Plastic 270 pounds 410 pounds 1,026 Metal 70 pounds 65 pounds 196 Print Done Account Information Sales and Inventory Information, Finished Goods Cat-allac Dog-eriffic Expected sales in units Selling price Target ending inventory in units Beginning inventory in units Beginning inventory in dollars 580 190 $ 45 25 2,500 $ 215 260 25 40 7,440 Pet Transport uses a FIFO cost-flow assumption for finished-goods inventory Print Done Other information Cost Driver Information Cat-allac Do g-errific Number of units per batch Setup time per batch Inspection time per batch 25 10 25 hours 2.00 hours 0.6 hour 0.5 hours If necessary, round up to calculate number of batches. Nonmanufacturing fixed costs for March equal $30,000, 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 Print Done Requirements Prepare the following for April 1. 2. 3. 4. 5. 6. Revenues budget Production budget in units Direct material usage budget and direct material purchases budget Direct manufacturing labor cost budget Manufacturing overhead cost budgets for each of the three activities Budgeted unit cost of ending finished goods inventory and ending inventories budget Cost of goods sold budget Nonmanufacturing costs budget Budgeted income statement (ignore income taxes) How does preparing the budget help Pet Transport's management team better manage the company? 7. 8. 9. 10. Print Done