The Sackin Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2016, Sackin's budget department gathered the following data to prepare budgets for 2017: (Click the icon to view the budget data.) BE(Click the icon to view the actual and projected direct materials data.) |(Click the icon to view the projected direct manufacturing labor data.) Manufacturing overhead is allocated at the rate of $23 per direct manufacturing labor-hour. Read the requirements. Requirement 1. Prepare the revenues budget (in dollars). Revenues Budget For the Year Ending December 31, 2017 Units Price Total Thingone Thingtwo Budgeted revenues - Actual and projected direct materials data Budget data The following direct materials are used in the two products: Amount Used per Unit 2017 Projected Sales Product Units Price Direct Material Unit Thingone Thingtwo Thingone 60,000 $ 165 A pound 6 7 Thingtwo 48,000 $ 252 B pound 4 5 2017 Inventories in Units each 0 3 Projected data for 2017 for direct materials are: Expected Target January 1, 2017 December 31, 2017 Product Anticipated Expected Target Thingone 26,000 31,000 Direct Purchase Inventories Inventories Thingtwo 11,000 12,000 Material Price January 1, 2017 December 31, 2017 A $ 14 32,000 lb. B 7 28,000 lb. 36,000 lb. 33,000 lb. 8,000 units Print Done 4 5,000 units Print Done - - Requirements Projected direct manufacturing labor data Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2017: Projected direct manufacturing labor requirements and rates for 2017 are: 1. Product Hours per Unit Rate per Hour 2. Thingone 4 $ 14 5 Thingtwo $ 3. 19 4. 5. Revenues budget (in dollars) What questions might the CEO ask the marketing manager when reviewing the revenues budget? Explain briefly. Production budget (in units) Direct material purchases budget (in quantities) Direct material purchases budget (in dollars) Direct manufacturing labor budget (in dollars) Budgeted finished-goods inventory at December 31, 2017 (in dollars) What questions might the CEO ask the production manager when reviewing the production, direct materials, and direct manufacturing labor budgets? How does preparing a budget help Sackin Corporation's top management better manage the company? 6. 7. Print Done 8. 9