Percy's Pickled Snacks Produces Several Types of Pickled Vegetables

question 44

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:

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments.

NPVs

NPVs, or Net Present Values, is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Expansion

The process by which a company grows in size, scope, or production capacity, often through increased output or market presence.

Products

Goods or services offered by a company to customers in the marketplace.