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Budgeting Culture and Behavior

A) If sales level were 10% higher than budgeted, how many pounds of raw materials would Bob need to rush order each month so that he can meet demand and the required ending inventory as shown in the budget?

B) Why does it appear that the purchasing department is having trouble meeting its budget?

C) Is it appropriate to blame Bob for all of the purchasing problems?

D) If Yvonne does "make some changes," what changes would you suggest she consider?

Please see attached spreadsheet in Excel 2000.

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"Bob is the purchasing manager for regal products. Each year Regal Products develops a master budget. Bob is responsible for preparing a purchasing budget, which he bases on budgeted levels of production. Bob carefully plans purchasing costs and raw material inventory levels to meet product needs.

Each year, Yvonne, president of Regal Products, conducts performance valuations and bonuses are paid ...

Solution Summary

This solution is comprised of a detailed explanation to answer how many pounds of raw materials would Bob need to rush order each month so that he can meet demand and the required ending inventory as shown in the budget, why does it appear that the purchasing department is having trouble meeting its budget, is it appropriate to blame Bob for all of the purchasing problems, and if Yvonne does "make some changes," what changes would you suggest she consider.

$2.19