Budgeting; direct material usage, manufacturing cost, and gross margin. Xander Manufacturing…

Budgeting; direct material usage, manufacturing cost, and gross margin. Xander Manufacturing Company manufactures blue rug s, using wool and dye as direct materials. One rug is budgeted to use 36 skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $6 per gallon. All other materials are indirect At the beginning of the year Xander has an inventory of 458,000 skeins of wool at a cost of $961,800 and 4,000 gallons of dye at a cost of $23,680. Target ending inventory of wool and dye is zero. Xander uses the FIFO inventory cost-flow method. Xander blue rugs are very popular and demand is high, but because of capacity constraints the firm will produce only 200,000 blue rugs per year. The budgeted selling price is $2,000 each. There are no rugs in beginning inventory. Target ending inventory of rugs is also zero. Xander makes rugs by hand, but uses a machine to dye the wool. Thus, overhead costs are accumulated in two cost pools~ one for weaving and the other for dyeing. Weaving overhead is allocated to products based on direct manufacturing labour-hours (DMLH). Dyeing overhead is alloca ted to products based on machine-hours (MH). There is no direct manufacturing labour cost for dyeing. Xander budgets 62 direct manufacturing labour-hours to weave a rug at a budgeted rate of $13 per hour. It budgets 0.2 machine-hours to dye each skein in the dyeing process. The following table presents the budgeted overhead costs for the dyeing and weaving cost pools:

Required

1. Prepare a direct materials usage budget in both units and dollars.

2. Calculate the budgeted overhead allocation rates for weaving and dyeing.

3. Calculate the budgeted unit cost of a blue rug for the year.

4. Prepare a revenues budget for blue rugs for the year. assuming Xander sells (a) 200,000 or (b) 185,000 blue rugs (that is, at two different sales levels).

5. Calculate the budgeted cost of goods sold for blue rugs under each sales assumption.

6. Find the budgeted gross margin for blue rugs under each sales assumption.

7. What actions might you take as a manager to improve profitability if sales drop to 185,000 blue rugs?

8. How might top management at Xander use the budget developed in requirements 1-6 to better manage the company?

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with My Study Writers
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Criminal Justice
This has been the greatest help while I am recovering from an illness. Thank your team so much.
Customer 452671, May 2nd, 2021
Psychology
Received before the deadline. Great job!
Customer 453027, January 15th, 2022
Business and administrative studies
excellent
Customer 453201, November 29th, 2022
Other
Thank you , Excellent work
Customer 453201, June 2nd, 2022
Nursing
Thank you so much for your help! :)
Customer 453167, May 11th, 2022
Business Studies
Amazing!
Customer 452985, November 11th, 2021
Accounting
Looks amazing!
Customer 453283, September 2nd, 2022
Emergency Management
Thanks
Customer 453015, October 28th, 2022
Economics
Nice work
Customer 453185, May 21st, 2022
Nursing
Impressive writing
Customer 452547, February 6th, 2021
Management
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
Social Sciences
Very fast report with excellent information on the topic. Thank you for your speedy service in such a short time.
Customer 453213, June 15th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Live ChatWhatsApp