Question
on January 1, bandy manufacturing develops the production plan for a product called handy dandy. The company plans to sell each unit of handy dandy
on January 1, bandy manufacturing develops the production plan for a product called handy dandy. The company plans to sell each unit of handy dandy for $25.00.Management has forecast the following in sales units for the first three months. sales January February march $35000 $28000 $40000 each unit of handy dandy requires 2 kg of dingaling and 1 hour of direct labor. management wants to end each month with handy dandy inventory level equal to 10 percent of the following month's sales and dingaling inventory equal to 5per cent of the following month's production. Dingaling can be purchased for $3 per kg and direct labor costs are estimated to be $5.00 per hours. required/ a)how many units should bandy manufacturing produce in January and February? b)how many kilograms of dangling should be purchased in January? Does bandy plan to have no inventory of dingaling on January 1? c)calculate the budgeted direct labor costs in January? d)calculate the budgeted prime costs in January? e)explain the advantage of using a flexible budget for control, compared with using a static budget?
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