Percy's Pickled Snacks Produces Several Types of Pickled Vegetables

question 177

Multiple Choice

Percy's Pickled Snacks produces several types of pickled vegetables.The company budgets for each quarter in the last month of the previous quarter.In early March,Percy is preparing the budget for pickled beets.Budgeted sales are 12,000 jars for April,16,000 jars for May,and 19,000 jars for June.Each jar requires 1.2 pounds of beets.The pickling process takes 60 minutes for 20 jars.Because pressurized cooking is used,the processing is monitored by an employee at all times.Each jar of pickled beets sells for $15.00.

Percy requires ending Finished Goods inventory equal to 25% of the following month's sales.Other information is as follows:
What is Percy's direct labor budget for May?

• A) $12,450
• B) $10,050
• C) $7,200
• D) $9,600

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Definitions:

Downturns

Periods or phases characterized by economic decline, reduced activity, or diminished performance.

Distress

A negative emotional state that is a response to stress, characterized by feelings of anxiety, sorrow, or pain.

Approach-avoidance

A psychological conflict that involves being drawn to and simultaneously repelled by the same object, situation, or action.

Avoidance-avoidance

A decision-making process involving a choice between two equally undesirable outcomes or options.