Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Risingstar Cookie Company makes and sells three flavours of cookies: Macaroon, Buttercream, and Sugar. Batch size for the cookies is limited to 1,000 cookies based on a size of the ovens and cookie molds owned by a company. Based on budgetary projections, the information given 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 the activity-cost-driver rate for packaging costs.

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

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

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

5)      Using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated operating profit per thousand cookies.

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

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99879

Have any Question? 


Related Questions in Accounting Basics

Task1 create journal entries for the following

Task: 1. Create journal entries for the following transactions. 2. Draw up a T-accounts for each account affected by transactions. 3. Calculate ending balances for all T-accounts. Transactions: March, 1: Student Corp. re ...

On the cash dividends become a liability of a

On the ________, cash dividends become a liability of a corporation. declaration date date of record end of the fiscal year payment date ________ are equity securities in which the investor owns 20% or more, but less tha ...

Write a 700- to 1050-word paper including the followingthe

Write a 700- to 1,050-word paper including the following: The purpose of accounting and financial reporting within your organization or an organization with which you are familiar. A description of the people, processes, ...

Exercise recording receivables and identifying their effect

Exercise: Recording receivables and identifying their effect on financial statements Davos Company performed services on account for $160,000 in 2016. Davos collected $120,000 cash from accounts receivable during 2016, a ...

1you have been hired by the cfo of strayer university to

1.You have been hired by the CFO of Strayer University to develop a plan to protect its accounting and financial systems at a reasonable cost. Suggest a high-level plan for the CFO. Provide support for your suggestion. B ...

Exercise 1for roche inc variable manufacturing overhead

Exercise 1 For Roche Inc., variable manufacturing overhead costs are expected to be $20,780 in the first quarter of 2017, with $4,150 increments in each of the remaining three quarters. Fixed overhead costs are estimated ...

Part 1royal oak taxation advisory service has the following

PART 1 Royal Oak Taxation Advisory Service has the following transactions for the month of December 2016 : Dec. 1 Commenced business by depositing $50 000 in a bank account in the name of the business 2 Bought a vehicle ...

Project - case 1davis dry goods distributes silk ties you

Project - Case 1 Davis Dry Goods distributes silk ties. You are in charge of creating Davis' master budget for the upcoming second quarter, April - June 2015. Davis desires a minimum ending cash balance each month of $11 ...

Dq1respond to the ethics discussion case at the end of

DQ1 Respond to the Ethics Discussion Case at the end of chapter 13 in the textbook. Assume that you are a CPA and a tax specialist. Your clients include Ale and Grains, Inc., an S corporation, and Gustav and Heidi Lager, ...

Accounting for governmenttrue or false1 a fund in itself is

ACCOUNTING FOR GOVERNMENT True or False 1. A fund in itself is a separate legal entity that is established to comply with laws that require that certain transactions be segregated and accounted for as a separate "fund." ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen