Larry Miller, Controller for Kipling Company, Has Been Instructed to Develop

question 51

Essay

Larry Miller, controller for Kipling Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of frozen desserts: Icey and Tasty. The two desserts use common raw materials in different proportions. The company expects to produce 200,000 gallons of each product during the coming year. Icey requires 0.25 direct labor hour per gallon and Tasty requires 0.30. Larry has developed the following fixed and variable costs for each of the four overhead items:

-Refer to Figure 11-7. Assume that Kipling actually produced 240,000 gallons of Icey and 200,000 of Tasty. The actual overhead costs incurred were:
Required:

---

Definitions:

Government Intervention

Involves actions taken by a government to affect the economy, social issues, or other areas of public policy.

Occupy Movement

A global protest movement against economic inequality, social injustice, and the undue influence of corporations on government that gained prominence in 2011.

Critical Industrial Relations

An analytical approach focusing on power dynamics, the conflicts between capital and labor, and the role of government policies in shaping the work environment and relationships.

Employer Of Choice

A designation for businesses that attract, motivate, and retain top talent due to their desirable policies, practices, and working conditions.