On January 1, Bandy Manufacturing Plans to Introduce a Product

question 66

Multiple Choice

On January 1, Bandy Manufacturing plans to introduce a product called Handy Dandy. The company plans to sell each unit of Handy Dandy for $25.00. Management has forecast the following in sales units for the first three months.
Each unit of Handy Dandy requires 2 kg of Dingaling and 1 hour of direct labour. Management wants to end each month with a Handy Dandy inventory level equal to 10 per cent of the following month's sales, and a Dingaling inventory equal to 5 per cent of the following month's production. Dingaling can be purchased for $3 per kg and direct labour costs are estimated to be $5.00 per hour. What are Bandy Manufacturing's budgeted prime costs in January?

• A) $235 560
• B) $294 000
• C) $385 000
• D) None of the given answers

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Definitions:

Family Decisions

involve collective choices made by family members regarding aspects such as education, health care, financial management, and daily living activities.

Permissive/indulgent

A parenting style characterized by high levels of warmth and low levels of discipline, where parents are more likely to allow their children considerable freedom inside and outside of the house.

Owner Parents

The legal guardians or caretakers of a child, implying responsibility and authority over the child's upbringing and welfare.

Baumrind's

refers to the typology of parenting styles developed by psychologist Diana Baumrind, characterized by varying levels of responsiveness and demandingness.