Reference no: EM13490280
Yummy-Pop Ltd makes lollipops in two sizes, large and giant. The company sells these lollipops to convenience stores, fairs, schools for fundraisers, and in bulk on the Internet.
Summer is approaching and Yummy-Pop is preparing its budget for the month of December 2013. The lollipops are hand-made, mostly out of sugar and attached to wooden sticks. Expected sales are based on past experience.
Other information for the month of December follows:
Input prices
|
Direct materials
|
|
|
Sugar
|
$0.50 per kilogram (kg)
|
|
Sticks
|
$0.30 each
|
|
Direct manufacturing labour
|
$8 per direct manufacturing labour-hour
|
Input quantities per unit of output
|
Direct materials
|
Large
|
Giant
|
|
Sugar
|
0.25 kg
|
0.5 kg
|
|
Sticks
|
1
|
1
|
|
Direct manufacturing labour-hours (DMLH)
|
0.2 hour
|
0.25 hour
|
|
Set-up hours per batch
|
0.08 hour
|
0.09 hour
|
Inventory information, direct materials
|
|
Sugar
|
Sticks
|
|
Beginning inventory
|
125 kg
|
350
|
|
Target ending inventory
|
240 kg
|
480
|
|
Cost of beginning inventory
|
$64
|
$105
|
Yummy-Pop accounts for direct materials using a FIFO cost flow assumption.
Sales and inventory information, finished goods
|
|
Large
|
Giant
|
|
Expected sales in units
|
3000
|
1800
|
|
Selling price
|
$3
|
$4
|
|
Target ending inventory in units
|
300
|
180
|
|
Beginning inventory in units
|
200
|
150
|
|
Beginning inventory in dollars
|
$500
|
$474
|
Yummy-Pop uses a FIFO cost flow assumption for finished goods inventory.
All the lollipops are made in batches of 10. Yummy-Pop incurs manufacturing overhead costs, and marketing and general administration costs, but customers pay for shipping. Other than manufacturing labour costs, monthly processing costs are very small.
Yummy-Pop uses activity-based costing and has classified all overhead costs for the month of December as shown in the following chart:
|
Cost type
|
Denominator activity
|
Rate
|
|
Manufacturing:
|
|
|
|
Set-up
|
Set-up hours
|
$20 per set-up hr
|
|
Processing
|
Direct manufacturing labour-hours (DMLH)
|
$1.70 per DMLH
|
|
Non-manufacturing:
|
|
|
|
Marketing and general administration
|
Sales revenue
|
10%
|
Required:
Prepare each of the following for December 2013:
a. Revenues budget
b. Production budget in units
c. Direct material usage budget and direct material purchases budget
d. Direct manufacturing labour cost budget
e. Manufacturing overhead cost budgets for processing and set-up activities
f. Budgeted unit cost of ending finished goods inventory and ending inventories budget
g. Budgeted income statement.
|
By how much would the temperature of the air rise
: A closed auditorium of volume 25700 m3 is filled with 2050 people at the beginning of a show, and the air in the space is at a temperature of 291 K and a pressure of 1.013·10^5 Pa. by how much would the temperature (in K) of the air rise
|
|
What force did the players hand exert on the ball
: the football has a mass of .40kg and the quarterback that threw the ball accelerated it from rest to 25 m/s in a distance of .60m. what force did the player's hand exert on the ball
|
|
A demonstration of critical evaluation of the issues
: Critically review the above. Do you agree, partly agree or disagree with the issues raised in the above? Discuss your reason (s) for doing so. You need to support your viewpoint with carefully chosen and authoritative evidence.
|
|
Compute the total force acting on the object
: A charged object has two forces acting on it: F1 (4 Newtons, pointing up at 120 degrees from the positive x axis), Compute the total (net) force acting on the object
|
|
Define yummy-pop accounts for direct materials using a fifo
: Yummy-Pop Ltd makes lollipops in two sizes, large and giant. The company sells these lollipops to convenience stores, fairs, schools for fundraisers, and in bulk on the Internet.
|
|
What is the acceleration of the more massive box
: Two boxes of masses, m and 2m, are in contact with each other on a frictionless surface. What is the acceleration of the more massive box
|
|
What is the kinetic energy of the plant
: an old lady carries a 4kg potted plant to the top of a 100m tall building. what is the kinetic energy of the plant when it hits the ground
|
|
Calculate the half-life of this nuclide
: A 2.71 g sample of KCl from the chemistry stockroom is found to be radioactive, and it is decaying at a constant rate of 4490 Bq. Calculate the half-life of this nuclide
|
|
Define budgeting gamesmanship
: Yummy-Pop Ltd makes lollipops in two sizes, large and giant. The company sells these lollipops to convenience stores, fairs, schools for fundraisers, and in bulk on the Internet.
|