Question 1:

Moon Crater Cookies is a company that manufactures cookie dough to sell to local desert shops. Moon Crater is currently preparing its cash budgets for the month of December.

1. Operating Expenses - $42,000

2. Property Taxes - $9,500

3. Direct Labor - $23,540

4. Manufacturing Overhead - 115% of direct labor costs

5. Direct Materials - 40% of the previous months purchases (Previous month = $64,320)

6. Total Depreciation - ($-24,633)

Given the following information, what is the total cash budget amount that Moon Crater Cookies should acccount for in December?

Question 2:

Under new management, Moon Crater Cookies now decides that they want to produce two different sizes of cookie dough for its customers, medium and large. Using its machinery, Moon Crater can produce 12 medium bins per hour or 8 large bins per hour. The sales price per unit is 10.20 for medium boxes and 14.50 for large ones. The variable cost per unit for the medium boxes is $4.50 and $6.50 for the large box, respectively. Based on the information given, which size cookie dough box would have a higher contribution margin per machine hour? With that being said, which size box should the company focus on producing?