Comprehensive problem with ABC costingAnimal Gear 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:Animal Gear accounts for direct materials using a FIFO cost flow assumption. Animal Gear uses a FIFO cost flow assumption for finished goods inventory. Animal Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows: Nonmanufacturing fixed costs for March equal $32,000, half of which are salaries. Salaries are expected to increase 5% in April. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. Prepare the following for April:Required:1. Revenues budget2. Production budget in units3. Direct material usage budget and direct material purchases budget4. Direct manufacturing labor cost budget5. Manufacturing overhead cost budgets for each of the three activities6. Budgeted unit cost of ending finished goods inventory and ending inventories budget7. Cost of goods sold budget8. Nonmanufacturing costs budget9. Budgeted income statement (ignore income taxes)10. How does preparing the budget help Animal Gear's management team better manage the company?