Caitlyn wants to knit one hat for each of her three kids. She budgets that she will use 6 yards of yarn, but she only ends up using 5 yards. Due to her busy schedule, she only finishes two of the hats, unfortunately. Is she over or under budget with respect to the quantity of yarn used?

The simplistic nature of the example offers students a learning opportunity without potentially confusing complications. However, it lacks a realistic association with a large-scale manufacturing context and thus fails to align with the cases we have been studying. Therefore, you have been tasked with creating your own standard quantity example that involves a commercial product with large volume manufacturing. You may not use an existing merchandise item, such as an iPhone, but rather, you must invent your own.

1. Write a short paragraph describing the product you invented making sure to include the products name, functionality/purpose, target market, competitive advantage, etc.

2. Make some reasonable assumptions as to

a. the total number of units budgeted for monthly production

b. the total number of units actually produced during the month (must be different than the budgeted amount)

c. the total quantity of one direct material (pounds of plastic, gallons of chlorine, etc.) budgeted for the month

d. the total quantity of one direct material (pounds of plastic, gallons of chlorine, etc.) actually used during the month

3. Create an example using the data which culminates in asking the question if the company was over/under budget with respect to use of the direct material.