Comprehensive budget John Hubbard retired from his job several years ago. To supple- ment his pension he makes stuffed animals which he sells to friends and neighbors. The demand for his products is especially heavy before the holidays, so he usually plans full scale production for October and November, during which time he hires a helper. He plans to spend $100 in October and November for advertising "Father Hubbard's Stuffed Animals." Manufacturing overhead is $3 per labor hour. He plans to limit production to two products, with the following sales and production data:

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Sales Forecast No. of Sales Product Units Price Quantity and Cost of Beginning Inventory Ending Inventory Panda Wabbit 50 50 $110 8 @ $90 20 95 5 @ $77 10 units 6 units Resources Required Required Use Materials Cost Panda Wabbit Black cloth $8 per yd. 1.5 yds. White cloth 6 per yd. 1 yd. 2 yds. Tan cloth 7 per yd. 1 yd. Stuffing 1 per lb. 5 lbs. 5 lbs. Owner's labor 8 per hr. 4 hrs. 3 hrs. Hired labor 5 per hr. 2 hrs. 2 hrs. Material Black cloth White cloth Tan cloth Stuffing Expected Inventories of Raw Materials Beginning Ending 10 yds. 12 yds. 8 yds. 10 yds. 5 yds. 8 yds. 20 lbs. 30 lbs.