- X - X Additional Blanket Information X : s: Direct Materials Manufacturing Overhead Information teams of the two Jan- The company sews the blankets from fabric and sews on a logo patch purchased from the licensed logo store site. The teams are as follows: Broncos, with red blankets and the Broncos logo Rams, with black blankets and the Rams logo Also, the black blankets are slightly larger than the red blankets. The budgeted variable manufacturing overhead rate for March 2020 is $19 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for March 2020 is $25,250. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods. Data pertaining to the direct materials for March 2020 are as follows: Actual Beginning Direct Materials Inventory, March 1, 2020 Broncos Blanket Rams Blanket Red wool fabric 50 yards O yards Black wool fabric 0 yards 30 yards Broncos logo patches 60 0 Rams logo patches 0 75 X Sales and Other Information Budgeted Direct-Cost Inputs The budgeted direct-cost inputs for each product in 2020 are as follows: Target Ending Direct Materials Inventory, March 31, 2020 Broncos Blanket Rams Blanket Budgeted sales for March 2020 are 160 units of the Broncos blankets and 205 units of the Rams blankets. The budgeted selling prices per unit in March 2020 are $505 for the Broncos blankets and $597 for the Rams blankets. Assume the following in your answer: Work-in-process inventories are negligible and ignored. Direct materials inventory and finished goods inventory are costed using the FIFO method. Unit costs of direct materials purchased and finished goods are constant in March 2020. Broncos Blanket Rams Blanket Red wool fabric 7 yards O yards Red wool fabric 40 yards 0 yards Black wool fabric 0 yards 8 yards Black wool fabric 0 yards 40 yards 1 0 40 0 Broncos logo patches Rams logo patches Direct manufacturing labor Broncos logo patches Rams logo patches 0 1 0 40 Print Done 6 hours 7 hours Finished Goods Inventory Direct-Cost Inputs Unit cost data for direct-cost inputs pertaining to February 2020 and March 2020 are as follows: February 2020 (actual) March 2020 (budgeted) Red wool fabric (per yard) $ 12 $ 13 Black wool fabric (per yard) 18 17 Broncos logo patches (per patch) 10 10 Rams logo patches (per patch) 9 11 Manufacturing labor cost per hour 29 30 Data relating to finished goods inventory for March 2020 are as follows: Broncos Blanket Rams Blanket Beginning inventory in units 18 23 Beginning inventory in dollars (cost) $ 2,880 $ 3,611 Target ending inventory in units 28 33 Print Done Requirement 1. Prepare the following budgets. a. Prepare the revenues budget. Revenues Budget For the Month of March Units Selling Price Broncos Blankets 160 $ Rams Blankets 205 597 505 $ Total revenues 80,800 122,385 203,185 Total b. Prepare the production budget in units. Production Budget For the Month of March Broncos Budgeted units sales 160 Add target ending finished goods inventory 28 Total required units 188 18 Deduct beginning finished goods inventory 170 Units of finished goods to be produced Rams 205 33 238 23 215 c. Prepare the direct material usage budget and direct material purchases budget. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. (For amounts with a zero Direct Material Usage Budget in Quantity and Dollars For the Month of March Material Broncos Rams Red wool Black wool logo patches logo patches Total Physical Units Budget Direct materials required for Broncos 1,190 yds. 170 0 1,720 0 Rams 215 1,190 1,720 170 215 Total quantity of direct material to be used yds. yds Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Broncos Rams To be purchased this period Broncos 0 yds. 0 yds. yds. III II I I II III Rams Direct materials to be used this period