Comprehensive budgeting problem; activity$-$based costing, operating and financial budgets. $($LO $1235)$ 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 $ $0\mathrm{.}50$ per kilo $($lb$)$

Sticks $ $0\mathrm{.}30$ each

Direct Manufacturing Labour $ $8$ per direct manufacturing labour hour

Input Quantities per unit of output:

Direct Materials $-$ Large

Sugar $0\mathrm{.}25$lb

Sticks $1$

Direct Manufacturing labour hours $($DMLH$)0\mathrm{.}20$ hours

Set up hours per batch $0\mathrm{.}08$ hours

Direct Materials $-$ Giant

Sugar $0\mathrm{.}50$ lb

Sticks $1$

Direct manufacturing labour hours $($DMLH$)0\mathrm{.}25$ hours

Setup hours per batch $0\mathrm{.}09$ hours

Inventory Information Direct Materials

Sugar:

Beginning inventory $125$lb

target ending inventory $240$lb

cost of beginning inventory $$64$

Sticks:

beginning inventory $350$

target ending inventory $480$

cost of beginning inventory $$105$

yummi lik accounts for direct materials using a FIFO cost flow assumption

Sales and infentory information $-$ finished goods

Expected sales in units Large $-3000$

Expected sales in units Giant $-1800$

yummi like uses a fifo cost flow assumption for finished goods inventory

All the lollipops are made in batches of $10.$ Yummi$-$Lik 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 low. Yummi$-$Lik uses ABC and has classified all overhead costs for the month of June as shown in the following chart:

Cost type:

Manufacturing:

Setup $-$ Denominator activity $=$ setup hours $-$ Rate $=$ $$20$ per setup hour

Processing $-$ Denominator activity $=$ DMLH $-$ Rate $=$ $$1\mathrm{.}70$ per DMLH

Non manufacturing:

Marketing and admin $-$ denominator activity $=$ sales revenue $-$ rate $=10\%$

Please answer A$-$H below ALL QUESTIONS:

Grant needs to prepare a full set of budgets for june:

a$)$ revenue budget

b$)$ production budget in units

c$)$ direct materials usage budget and direct materials purchases budget

d$)$ direct manufacturing labour cost budget

e$)$ manufacturing overhead costs budgets for processing and setup activities

f$)$ budgeted unit cost of ending finished goods inventory and ending inventories budget

g$)$ cost of goods sold budget

h$)$ marketing and general admin costs budget