Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Aunt Ethel's Fancy Cookie Company produces and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. Batch size for cookies is limited to 1,000 cookies based on size of ovens and cookie molds owned by company. Based on budgetary projections, information listed below is available:

 

Macaroon

Sugar

Butter cream

Projected sales in units

500,000

800,000

600,000

 

 

 

 

PER UNIT data:

 

 

 

Selling price

$0.80

$0.75

$0.60

Direct materials

$0.20

$0.15

$0.14

Direct labor

$0.04

$0.02

$0.02

 

 

 

 

Hours per 1000-unit batch:

 

 

 

Direct labor hours

2

1

1

Oven hours

1

1

1

Packaging hours

0.5

0.5

0.5

Total overhead costs and activity levels for the year are estimated as follows:

Activity

Overhead costs

Activity levels

Direct labor

$210,000

2,400 Hours

Oven

$150,000

1,900 Oven Hours

Packaging

$360,000

950 Packing Hours

1) Find out activity-cost-driver rate for packaging costs.

2) Using ABC system, for sugar cookie, find out estimated overhead costs per thousand cookies.

3) Using ABC system, for sugar cookie, find out estimated operating profit per thousand cookies.

4) Using traditional system (with direct labour hours as overhead allocation base) for sugar cookie, find out estimated overhead costs per thousand cookies.

5) Using traditional system (with direct labour hours as overhead allocation base) for sugar cookie, find out estimated operating profit per thousand cookies.

6) Describe difference between profits got from traditional system and ABC system. Which system gives better estimate of profitability? describe why?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M917392

Have any Question? 


Related Questions in Accounting Basics

Early morning on a bright day in mid-january 2009 james d

Early morning on a bright day in mid-January 2009, James D. White, CEO of Jamba Juice, was driving down highway 580 headed to Jamba Juice's Emeryville, California, headquarters. Unfortunately, today, White could not enjo ...

Garner company began operations on january 1 2010 and uses

Garner Company began operations on January 1, 2010, and uses the average cost method of pricing inventory. Management is contemplating a change in inventory methods for 2013. The following information is available for th ...

Question 1the accounts receivable account has total debit

Question 1 The Accounts Receivable account has total debit postings of $1,900 and credit postings of $1,100. The balance of the account is a/an A. $800 debit. B. $800 credit. C. $2,600 credit. D. $2,600 debit. Question 2 ...

The balance sheet provides a snapshot of the financial

The Balance Sheet provides a snapshot of the financial condition of a company at the end of an accounting period. It shows the assets, liabilities, and owner's equity in the business. 1. Identify each of the following as ...

1 if a bartender can somehow accumulate extra liquor and

1. If a bartender can somehow accumulate extra liquor, and does not register the extra drinks, which of these activities could be spotted by the analytical methods we studied? A. The bartender steals the extra liquor B. ...

Westerville company reported the following results from

Westerville Company reported the following results from last year % 2013 operations: Sales $ 1,000,000 Variable expenses 300,000 -------------------------------------- Contribution margin 700,000 Fixed expenses 500,000 - ...

Assignment entries65 mackay industries limited mil is a

Assignment: Entries 65 MacKay Industries Limited (MIL) is a Canadian company that manufactures leather fur- niture. Sales in 20X3 were $265 million, with strong exports to the United States. MIL is the leading Canadian m ...

Decide upon an initiative you want to implement that would

Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro ...

Question 1medeco bought goods for 250 on credit medeco

Question 1 Medeco bought goods for $250 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed within the discount period, what is the amount it should pay? A. $2 ...

Modified accrual accounting and general fund itemscomplete

Modified Accrual Accounting and General Fund Items Complete the following questions based on the Chapter 4 material: • Outline revenue recognition criteria under modified accrual accounting. Include specific requirements ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro