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Posted on Aug 28, 2024

based on the costing information in the chart above, please do question 7 and question 8. updated manufacturing overhead: Classifications Cost items Amount (per meal)

based on the costing information in the chart above, please do question 7 and question 8.

updated manufacturing overhead: image text in transcribed

Classifications Cost items Amount (per meal) (per meal) Variable Costs Product costs DM DM total $3.73 Meal cost = $3.41 $3.41+ 5.05 + S. 11 +$.03 + Foil = $.05 $.02 - $.09+ $.02 = $3.73 Bowl = 5.11 Spoon = $.03 Napkin = 5.02 Bag = 5.09 Gloves = 5.02 DL DL total $1 $ 25 per employee 4 employees $ 25= $1 per meal MOH MOH total Utilities = $0.01 $0.01 Equipment maintenance = NIA (included with utilities lease) $ he Us for SS Abo n Classifications Amount Cost items (per month) (per month) Fixed Costs Product costs Total fixed product costs Ingredients, napkins Bread = $490 and wrapping Cheese = $2,333 % Foil = $531.96 $490 + $2,333 + S531.96 + $6,930 + $770 + $210+ $7000 + $420 + $630+ $604.16= $12,989.42 Soup = $6,930 Soup bowls = $770 Spoons = $210 Milk = $7000 Napkins = $420 Paper bags = 5630 Gloves = 5604.16 Period costs Total fixed period costs Billboard = $1,200 Salary, rent, advertising $1,200 $28.320 + $1,299 $30,819 Salary = $28,320 Rent = $1,299 2) How much is the total variable cost per meal? The variable cost might change depending on the amount of meals our business actually sells, but based on our forecast for 7.000 meals a month, our variable cost would be $23.870. We are using 53.41 for VC instead of $3.73 in order to not double book the cost of gloves, bowis, spoons etc. per meal because we will include these costs in the monthly FC, as we will be buying these materials in bulk at the beginning of the month 3) How much the total fixed cost per month? $420 + $604.16 + $770 +$ 531.96 +$210 - $630 = $3.166.12 4) Prepare a monthly cost formula in the y = a + bx format Y = $3.166.12 +53.41x x= number of meals @ $3.41 cost per meal Y = total cost F = 53,166.12 Required 7 Product cost per meal under absorption (ie, traditional) costing approach as in Chapter 3 - show your calculation Required 8 1) Contribution margin per meal-show your calculation 2) Break even quantity of sales per month (in number of meals) - show your calculation BI C C M C PB X og UFF1UR2E10-BZ-OaHLSCljvdjagDbNts|VBwJwE/edit?ts=51 elle Zhang FEIE E- E - EIX 2 a 4 F = $3,166.12 Required 7 Product cost per meal under absorption (i.e. traditional) costing approach as in Chapter 3 - show your calculation Required 8. 1) Contribution margin per meal-show your calculation 2 Break even quantity of sales per month (in number of meals) - show your calculation 3) Will your estimated sales level be high enough to break even? - show your calculation Required 9. Prepare a monthly income statement in a contribution format DL DL total $1 $.25 per employee 4 employees $.25 = $1 per meal MOH MOH total Utilities (basic)= $0.01 Utilities (w/ internet) = $0.02 Equipment maintenance =T N/A (included with utilities lease) Classifications Cost items Amount Classifications Cost items Amount (per meal) (per meal) Variable Costs Product costs DM DM total $3.73 Meal cost = $3.41 $3.41+ 5.05 + S. 11 +$.03 + Foil = $.05 $.02 - $.09+ $.02 = $3.73 Bowl = 5.11 Spoon = $.03 Napkin = 5.02 Bag = 5.09 Gloves = 5.02 DL DL total $1 $ 25 per employee 4 employees $ 25= $1 per meal MOH MOH total Utilities = $0.01 $0.01 Equipment maintenance = NIA (included with utilities lease) $ he Us for SS Abo n Classifications Amount Cost items (per month) (per month) Fixed Costs Product costs Total fixed product costs Ingredients, napkins Bread = $490 and wrapping Cheese = $2,333 % Foil = $531.96 $490 + $2,333 + S531.96 + $6,930 + $770 + $210+ $7000 + $420 + $630+ $604.16= $12,989.42 Soup = $6,930 Soup bowls = $770 Spoons = $210 Milk = $7000 Napkins = $420 Paper bags = 5630 Gloves = 5604.16 Period costs Total fixed period costs Billboard = $1,200 Salary, rent, advertising $1,200 $28.320 + $1,299 $30,819 Salary = $28,320 Rent = $1,299 2) How much is the total variable cost per meal? The variable cost might change depending on the amount of meals our business actually sells, but based on our forecast for 7.000 meals a month, our variable cost would be $23.870. We are using 53.41 for VC instead of $3.73 in order to not double book the cost of gloves, bowis, spoons etc. per meal because we will include these costs in the monthly FC, as we will be buying these materials in bulk at the beginning of the month 3) How much the total fixed cost per month? $420 + $604.16 + $770 +$ 531.96 +$210 - $630 = $3.166.12 4) Prepare a monthly cost formula in the y = a + bx format Y = $3.166.12 +53.41x x= number of meals @ $3.41 cost per meal Y = total cost F = 53,166.12 Required 7 Product cost per meal under absorption (ie, traditional) costing approach as in Chapter 3 - show your calculation Required 8 1) Contribution margin per meal-show your calculation 2) Break even quantity of sales per month (in number of meals) - show your calculation BI C C M C PB X og UFF1UR2E10-BZ-OaHLSCljvdjagDbNts|VBwJwE/edit?ts=51 elle Zhang FEIE E- E - EIX 2 a 4 F = $3,166.12 Required 7 Product cost per meal under absorption (i.e. traditional) costing approach as in Chapter 3 - show your calculation Required 8. 1) Contribution margin per meal-show your calculation 2 Break even quantity of sales per month (in number of meals) - show your calculation 3) Will your estimated sales level be high enough to break even? - show your calculation Required 9. Prepare a monthly income statement in a contribution format DL DL total $1 $.25 per employee 4 employees $.25 = $1 per meal MOH MOH total Utilities (basic)= $0.01 Utilities (w/ internet) = $0.02 Equipment maintenance =T N/A (included with utilities lease) Classifications Cost items Amount