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$6-42$ Comprehensive operating budget $.$ Skulas $,$ Inc. $,$ manufactures and sells snowboards $.$ Skulas manu$-$ factures a single model $,$ the Pipex $.$ In late $2017,$ Skulas's management accountant gathered the following data to prepare budgets for January $2018$ : Materials and Labor Requirements Direct materials Wood Fiberglass Direct manufacturing labor $9$ board feet $($b$.$f$.)$ per snowboard $10$ yards per snowboard $5$ hours per snowboard Skulas's CEO expects to sell $2,900$ snowboards during January $2018$ at an estimated retail price of $$650$ per boardFurther, the CEO expects $2018$ beginning inventory of $500$ snowboards and would like to end January $2018$ with $200$ snowboards in stock Direct Materials Inventories Beginning Inventory $1/1/2018$ Ending Inventory $1/31/2018$ Wood $2,040$ b$.$f$.1,540$ b$.$f$.$ Fiberglass $1,040$ yards $2,040$ yards manufacturing overhead is $7$ per direct manufacturing labor$-$hour. There are also $$81,000$ in fixed manufacturing overhead costs budgeted for January $2018.$ Skulas combines both variable and fixed manu$-$ facturing overhead into a single rate based on direct manufacturing labor$-$hours. Variable marketing costs are allocated at the rate of $$250$ per sales visit. The marketing plan calls for $38$ sales visits during January $2018.$ Finally, there are $$35,000$ in fixed nonmanufacturing costs budgeted for January $2018$ Other data include: $20182017$ Unit PriceUnit Price Wood Fiberglass Direct manufacturing labor $$32\mathrm{.}00$ per b$.$f$.$ $ $8\mathrm{.}00$ per yard $$34\mathrm{.}00$ per b$.$f$.9\mathrm{.}00$ per yard $ $29\mathrm{.}00$ per hour $$28\mathrm{.}00$ per hour The inventoriable unit cost for ending finished$-$goods inventory on December $31,2017,$ is $$374\mathrm{.}80.$ Assume uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process your calculations $.1.$ Prepare the January $2018$ revenues budget $($ in dollars$).2$ Prepare the January $2018$ production budget $($in units$).$ Prepare the direct material usage and purchases budgets for January $2018$ Prepare a direct manufacturing labor costs budget for January $2018$ Prepare a manufacturing overhead costs budget for January $2018.$ What is the budgeted manufacturing overhead rate for January $2018?$ What is the budgeted manufacturing overhead cost per output unit in January $2018?$ Calculate the cost of a snowboard manufactured in January $2018.$ Prepare an ending inventory budget for both direct materials and finished goods for January $2018.$ Prepare a cost of goods sold budget for January $2018.$ Prepare the budgeted income statement for Skulas, Inc., for January $2018.$ What questions might the CEO ask the management team when reviewing the budget? Should the CEO stretch targets $?$ Explain briefly $.13.$ How does preparing the budget help Skulas's management team better manage the company $?$

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