Pet Luggage 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 Luggage uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are

$100 per setup-hour, $5 per machine-hour, and $16 per inspection-hour, respectively. Other information follows:

Requirement 1. Prepare the revenues budget.

Revenues Budget
For the Month of April
	Units	Selling price	Total revenues
Cat-allac	500	$215	$107,500
Dog-eriffic	215	320	68,800
Total			$176,300

Part 2

Requirement 2.

Prepare

the production budget in units.

Production Budget (in Units)
For the Month of April
		Cat-allac	Dog-eriffic
Budgeted units sales		500	215
Add target ending finished goods inventory		35	15
Total required units		535	230
Deduct beginning finished goods inventory		15	30
Units of finished goods to be produced		520	200

Part 3

Requirement 3. 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.

Direct Material Usage Budget in Quantity and Dollars
For the Month of April
	Material
	Plastic		Metal		Total
Physical Units Budget
Direct materials required for
Cat-allac	1,560	lbs.	260	lbs.
Dog-errific	1,000	lbs.	200	lbs.
Total quantity of direct material to be used	2,560	lbs.	460	lbs.

Part 4

Cost Budget
Available from beginning direct materials inventory
(under a FIFO cost-flow assumption)
Plastic	874
Metal
To be purchased this period
Plastic
Metal
Direct materials to be used this period

Input Prices
Direct materials
Plastic	$4	per pound
Metal	$3	per pound
Direct manufacturing labor	$10	per direct manufacturing labor hour

Input Quantities per Unit of Output
	Cat-allac		Dog-eriffic
Direct materials
Plastic	3	pounds	5	pounds
Metal	0.5	pounds	1	pound
Direct manufacturing labor-hours	3	hours	5	hours
Machine-hours (MH)	10	MH	18	MH

Inventory Information, Direct Materials
	Plastic		Metal
Beginning inventory	230	pounds	80	pounds
Target ending inventory	370	pounds	70	pounds
Cost of beginning inventory	$874		$240

Sales and Inventory Information, Finished Goods
	Cat-allac	Dog-eriffic
Expected sales in units	500	215
Selling price	$215	$320
Target ending inventory in units	35	15
Beginning inventory in units	15	30
Beginning inventory in dollars	$1,500	$5,580

Pet Luggage uses a FIFO cost-flow assumption for finished-goods inventory.

Cost Driver Information
	Cat-allac		Dog-errific
Number of units per batch	20		8
Setup time per batch	1.50	hours	2.00	hours
Inspection time per batch	0.5	hours	0.6	hour

If necessary, round up to calculate number of batches. Operating (nonmanufacturing) fixed costs for March equal

$38,000, 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.Dialog content ends

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.		Operating (nonmanufacturing) costs budget
9.		Budgeted income statement (ignore income taxes)
10.		How does preparing the budget help Pet Luggage's management team better manage the company?

Please help me compute the cost budget?