Reference no: EM132470705
Problem - Great Canadian Cookies Company manufactures and sells three flavors of cookies: fudge, sugar, and Buttercream. The Batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds by the company. Based on the budgetary projections, the information listed below is available:
|
|
Fudge
|
Sugar
|
Buttercream
|
|
Projected sales in unit
|
500,000
|
800,000
|
600,000
|
|
Per Unit data:
|
|
Selling price
|
$0.80
|
$0.75
|
$0.60
|
|
Direct Material
|
$0.20
|
$0.15
|
$0.14
|
|
Direct Labour
|
$0.04
|
$0.02
|
$0.02
|
|
Overhead cost based on direct labour hours (traditional system)
|
$0.30
|
$0.15
|
$0.15
|
|
Hours per 1,000-unit batch:
|
|
Direct labour hours
|
2
|
1
|
1
|
|
Oven hours
|
1
|
1
|
1
|
|
Packaging
|
0.5
|
0.5
|
0.5
|
Total Overhead costs and activity levels for the three year are estimated as follows:
|
Activity
|
Overhead Cost
|
Activity levels
|
|
Direct labour
|
|
2,400hours
|
|
Oven
|
210,000
|
1,900 oven hours
|
|
Packing
|
$150,000
|
950 packing hours
|
Required -
a) Using thee traditional (simple) costing system, determine the operating profit per unit for the sugar cookies.
b) Determine the activity cost driver rate for oven costs and packaging costs.
c) Using ABC systems, for the sugar cookie:
1) compute the estimated overhead costs per unit.
2) compute the estimated operating profit per unit
d) Explain the difference between the profits obtained from the traditional system and the ABC system. Which system provides a better estimate of profitability? why?
|
What is the significance of lm left flank tenderness
: Describe how to assess for flank tenderness. What is the significance of L.M.'s left flank tenderness? What are L.M.'s risk factors for developing a urinary
|
|
What are the auditing report
: What are the Material Level, the Additional Information, and the auditing report of 4 situations, a major customer of Prince Construction Co declared bankruptcy
|
|
Calculate the amount of gross profit
: Calculate the amount of gross profit/loss that should be recognized (2017, 2018 & 2019) each year using the percentage-of-completion method
|
|
Determine what is the material level
: Determine What is the Material Level? What is the Additional Information? What is the auditing report? evaluating the client's estimation of the investment
|
|
Determine the operating profit per unit for sugar cookies
: The Batch size for the cookies is limited to 1,000 cookies. Using thee traditional costing system, determine the operating profit per unit for the sugar cookies
|
|
What is the additional information
: You are auditing Deep Clean Services for the first time. What is the Additional Information? What is the Material Level? What is the auditing report?
|
|
Determine lionels breakeven point
: Determine Lionel's breakeven point (operating profit = 0) in sales dollars for the fiscal year ending June 30, 2019, if the company hires its own sales force
|
|
Collected and information provided by the client
: After careful review of the data collected and information provided by the client, what action should the nurse take?
|
|
What is the total amount of manufacturing overhead cost
: If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
|