=+10-42 KKK Comprehensive budgeting problem: activity-based costing, operating and financial budgets (Appendix 10-1)

Yummy-Pop makes really big lollipops in two sizes, large and giant. Yummy-Pop 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. 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.

Chapter 10: Master budget and responsibility accounting 415 M10_HORN3377_02_LT_C10.indd 415 2/09/13 3:46 PM Input prices Direct materials Sugar $0.50 per kilogram (kg)

Sticks $0.30 each