Question
6. After much hard work, Keiko produces a list of the activities performed at Fuji Cookies and their annual costs. In addition, she identifies an
6. After much hard work, Keiko produces a list of the activities performed at Fuji Cookies and
their annual costs. In addition, she identifies an activity driver for each activity and the annual
quantity of each activity driver. A partial list of activity costs and quantities of activity drivers
is shown:
Table 5: List of activities, Fuji Cookies
Activity
Activity cost ($)
Activity driver
Annual quantity of
activity driver
Prepare annual accounts
5,000
Not available
Process receivables
15,000
No. of invoices
5,000 invoices
Process payables
25,000
No. of purchase orders
2,500 purchase orders
Program production
28,000
No. of production
No. of pro
1,000 schedules
Process sales order
40,000
No. of sales orders
4,000 sales orders
Dispatch sales order
30,000
No. of dispatches
2,500 dispatches
Develop and test products
60,000
Assigned directly to products
Load mixers
14,050
No. of batches
1,000 batches
Operate mixers
45,900
No. of kilograms
200,000 kilograms
Clean mixers
6,900
No. of batches
1,000 batches
Move mixture to filling
3,450
No. of kilograms
200,000 kilograms
Clean trays
20,000
No. of trays
16,000 trays
Fill trays
16,000
No. of
cookies/macaroons
800,000
cookies/macaroons
Move to baking
8,000
No. of trays
16,000 trays
Set up ovens
50,000
No. of batches
1,000 batches
Bake
cookies/macaroons
130,000
No. of batches
1,000 batches
Move to packing
40,000
No. of trays
16,000 trays
Pack cookies/macaroons
80,000
No. of
cookies/macaroons
800,000
cookies/macaroons
Inspect macaroons
2,500
No. of macaroons
50,000 macaroons
QUESTION 4
(a) With reference to information provided in Table 5 and Table 6, bill of activities and
determine the cost per unit for (1) wafer cookies; and (2) macaroons.
(b) Do you have enough information to compute the cost per unit for each product? If not, what
other costs must be known before you can compute the cost per unit?
(c) Why is the cost per macaroon much different from that per wafer cookie? Would this
difference be reflected in the traditional costing system? Explain your answers.
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Principles Of Microeconomics
Authors: N Gregory Mankiw
9th Edition
035713348X, 9780357133484
