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6-42 Comprehensive budgeting problem; activity-based costing, operating and financial budgets. Grant Shew is the product manager at Yummi-Lik. Yummi-Lik sells really big lollipops in two
6-42 Comprehensive budgeting problem; activity-based costing, operating and financial budgets. Grant Shew is the product manager at Yummi-Lik. Yummi-Lik sells really big lollipops in two sizes, large and giant lollipops to convenience stores, at fairs, and to schools for fundraisers, as well as a bulk channel on the internet. The lollipops are handmade, mostly out of sugar, and attached to wooden sticks Grant is preparing the sales budget for the summer, knowing a successful sales season will have a big impact on his performance review. Expected sales are based on past experience. Other information for the month of June follows: Input prices Direct materials Sugar $0.50 per kilogram (Ib) Sticks $0.30 each Direct manufacturing labour 0.008 per direct manufacturing labour-hour Input quantities per unit of output Large Giant Direct materials Sugar 0.25 lb 0.50 lb Sticks
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