1) What is the cost allocation base?
2) Conduct CVP analysis
Exhibit 9 Line P Budgeted Operations 2003 Total 1 Packet 2 Packet 4 Packet Cases Produced (24 Boxes) Soto Ayam Soto Banjar Soto Madura Sop Buntut Total 35,000 50,000 12,500 2,500 100,000 12,500 8,750 2,500 1,250 25,000 17,500 23,750 7,500 1,250 50,000 5,000 17,500 2,500 25,000 60 Production Runs Soto Ayam Soto Banjar Soto Madura Sop Buntut Total 130 240 120 60 50 50 10 10 20 120 450 $259,200 40 10 230 $115,200 100 $115,200 $28,800 Thickener Costs (All flavors) Ingredient Costs: Soto Ayam Soto Banjar Soto Madura Sop Buntut Total Packaging Costs (All flavors) (Packaging Costs/Case) Direct Labor Hours Budgeted Wage Rate Line P Overhead: Depreciation Engineering (Set-ups) Filtration Plant Other Total Overhead $116,640 $21,600 $60,480 $290,880 $20,160 $109,440 $72,600 $6,600 $39,600 S4,680 $1,560 $3,120 $484,800 $49,920 $212,640 $150,000 $25,000 $75,000 ($1.00) ($1.50) 36,000 $10 /Direct Labor Hour $34,560 $161,280 $26,400 SO $222,240 $50,000 ($2.00) $1,017,375 135,000 1,913,625 1,140,000 $4,206,000 * Excluding stock costs from Mixing Exhibit 7 2003 Budget Costs and Operations of the Filtration Plant $42,750 30,000 1.230,000 Fixed Costs: Supervision Engineering Design Depreciation Total Fixed Costs Variable Costs: Total Filtration Plant Costs $1,302,750 610,875 $1,913,625 Exhibit 8 Budgeted Operations 2003 100,000 $480,000 20,000 $15.00 Units Produced (cases) Direct Material Costs* Direct Labor Hours Budgeted Wage Rate / Direct Labor Hour Line C Overhead: Depreciation Set-up Other Total Overhead $820,000 180.000 660.000 $1,660,000 *Excluding stock costs from Mixing Exhibit 9 Line P Budgeted Operations 2003 Total 1 Packet 2 Packet 4 Packet Cases Produced (24 Boxes) Soto Ayam Soto Banjar Soto Madura Sop Buntut Total 35,000 50,000 12,500 2,500 100,000 12,500 8,750 2,500 1,250 25,000 17,500 23,750 7,500 1,250 50,000 5,000 17,500 2,500 25,000 60 Production Runs Soto Ayam Soto Banjar Soto Madura Sop Buntut Total 130 240 120 60 50 50 10 10 20 120 450 $259,200 40 10 230 $115,200 100 $115,200 $28,800 Thickener Costs (All flavors) Ingredient Costs: Soto Ayam Soto Banjar Soto Madura Sop Buntut Total Packaging Costs (All flavors) (Packaging Costs/Case) Direct Labor Hours Budgeted Wage Rate Line P Overhead: Depreciation Engineering (Set-ups) Filtration Plant Other Total Overhead $116,640 $21,600 $60,480 $290,880 $20,160 $109,440 $72,600 $6,600 $39,600 S4,680 $1,560 $3,120 $484,800 $49,920 $212,640 $150,000 $25,000 $75,000 ($1.00) ($1.50) 36,000 $10 /Direct Labor Hour $34,560 $161,280 $26,400 SO $222,240 $50,000 ($2.00) $1,017,375 135,000 1,913,625 1,140,000 $4,206,000 * Excluding stock costs from Mixing Exhibit 7 2003 Budget Costs and Operations of the Filtration Plant $42,750 30,000 1.230,000 Fixed Costs: Supervision Engineering Design Depreciation Total Fixed Costs Variable Costs: Total Filtration Plant Costs $1,302,750 610,875 $1,913,625 Exhibit 8 Budgeted Operations 2003 100,000 $480,000 20,000 $15.00 Units Produced (cases) Direct Material Costs* Direct Labor Hours Budgeted Wage Rate / Direct Labor Hour Line C Overhead: Depreciation Set-up Other Total Overhead $820,000 180.000 660.000 $1,660,000 *Excluding stock costs from Mixing
