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Petunia Bags ( PB ) is a designer of high - quality backpacks and purses. Each design is made in small batches. Each spring, PB
Petunia Bags PB is a designer of highquality backpacks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows:
Data table
tabletableBudget for Costs and ActivitiesFor the Year Ended February Direct materialspurses,Direct materialsbackpacks,Direct manufacturing laborpurses,Direct manufacturing laborbackpacks,
tableSetupShippingDesignPlant utilities and administration,
tableTotal$
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