Question
Basic Multi-Layer Custom Direct Material Costs per wedding cake type $20 $35 $50 Direct Labor Hours per wedding cake type 3 hours 5 hours 7
| Basic | Multi-Layer | Custom | |
| Direct Material Costs per wedding cake type | $20 | $35 | $50 |
| Direct Labor Hours per wedding cake type | 3 hours | 5 hours | 7 hours |
| Number of cakes expected to be produced by wedding cake type | 1500 | 1700 | 1000 |
| Direct Labor Costs per hour per wedding cake type | $50/hour | $50/hour | $50/hour |
- Using job-order costing, compute the product cost for each product. Show all calculations and clearly label your answer.
- Basic Wedding Cake
- Multi-layer Wedding Cake
3. Custom Wedding Cake
f. Anticipate any business problems that may result from allocating the manufacturing overhead based only on the direct labor hours used to produce the wedding cakes.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
