Question

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: (Click the icon to view the information for the two products.) Pet Luggage accounts for direct materials using a FIFO cost-flow assumption. (Click the icon to view the account information.) 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: (Click the icon to view the other information.) Read the requirements. Direct Material Usage Budget in Quantity and Dollars For the Month of April Material Plastic Metal Physical Units Budget Direct materials required for Cat-allac 1,560 lbs. Total Dog-errific 1,000 lbs. 2,560 lbs. Total quantity of direct material to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Plastic Metal To be purchased this period Plastic Metal Direct materials to be used this period

Answer 1

ANSWER :- 1.

REVENUE BUDGET AMT. IN DOLLAR   AMT. IN DOLLAR AMT IN DOLLAR  

PRODUCTS CAT-ALLAC   DOG- ERIFFIC TOTAL

SALES 500    215

SELLING PRICE PER UNIT    215    320

REVENUE BUDGET   107500 68800 176300

ANSWER :- 2

PRODUCTION BUDGET IN UNITS       CAT-ALLAC   DOG- ERIFFIC

SALES ( UNITS ) 500 215

(+) ENDING INVENTORY    35 15

(-) BEGINNING INVENTORY     15 30

PRODUCTION BUDGET IN UNITS 520 200  

ANSWER :- 3 DIRECT MATERIALS USAGE & PURCHASE BUDGET

   CAT-ALLAC   DOG- ERIFFIC TOTAL

PRODUCTION 520 200

PLASTIC PER UNIT 3 POUND 5 POUND

USAGE BUDGET OF PLASTIC   1560 POUNDS    1000 POUNDS 2560 POUNDS

(+)CLOSING STOCK OF PLASTIC       380 POUNDS

(-) OPENING STOCK OF PLASTIC 270 POUNDS

PURCHASE BUDGET OF PLASTIC    2670 POUND  

PRICE PER UNIT ($) 4

PURCHASE VALUE $10680   

USAGE BUDGET OF METAL 260 POUND 200 POUND 460 POUND

(+)CLOSING STOCK OF METAL 70 POUNDS

(-) OPENING STOCK OF METAL 80 POUNDS

PURCHASE BUDGET OF METAL 450 POUNDS

PRICE PER UNIT ($) 3

PURCHASE VALUE $1350

ANSWER 4 :- DIRECT MANUFACTURING LABOUR BUDGET   

  CAT-ALLAC   DOG- ERIFFIC TOTAL

DIRECT MFG LABOUR HOUR PER UNIT 3 5

TOTAL DIRECT LABOUR HOURS 1560 1000 2560

RATE PER HOUR 10 10

DIRECT LABOUR BUDGET $ 15600 $10000 $25600

ANSWER 5 :- NON-  MFG OVERHEADS COST BUDGET   

   CAT-ALLAC   DOG- ERIFFIC TOTAL

FIXED MFG OVERHEADS

SALARIES (19000X1.05) $ 19950

OTHER FIXED COST $ 19000

NON MFG FIXED COSTOVERHEADS $ 38950