Question
Building a costing system Company Background XYZ Company is a food maker company which starts with its first project in Dammam. This project is a
Building a costing system Company Background XYZ Company is a food maker company which starts with its first project in Dammam. This project is a restaurant where foods are served to customers 10 hours a day from 6 am till 4 PM. In order to put prices for each dish, the owner of the company is looking for an accountant to build a costing system that can generate the cost of each dish. Table1: Menu with Ingredients Meal Ingredients ( per dish) 1 2 3 1 French fries with cheese 250 g potato 1 peace of slices cheese .2 liter of oil 2 Eggs dish 2 eggs 1 Tomato .5 peace of onion 3 salad 1 tomato 1 Onion I Cucumber 4 tea 1 tea bag 1 cup water 10 g sugar 5 Coffee 5 g Roasted Coffee beans .5 cup of water 5 g sugar Table 2: Average cost of ingredients Item Cost ( total ) Packages (# of units) Cost per unit $ Eggs 15 SR 30 eggs .5 potato 100 SR 10 kilos .01 Slices cheese 10 SR 10 Slices 1 Oil 15 SR 30 Liters .5 Tomato 5 SR 25 Tomatoes .2 Onion 5 SR 20 Opinions .25 Flour 4 SR 16 cups .25 Sugar 15 SR 40 kilos .375 per g cucumber 10 SR 30 cucumbers .3 tea 9 SR 45 bags .2 Coffee beans 18 SR 50 g .36 water 10 SR 60 liter .6 (Per cup) Table 3: other costs & manufacturing information (Monthly information) Meals # 1 2 3 4 5 Total Direct labor hours 50 20 30 15 24 139 H Machine hours 12 8 7 2 10 39 H Number of dishes served 240 400 200 180 260 1280 Direct labor cost 2000 8000 6000 2700 6240 24940 MOH Rent 3000 Electricity 4000 Supervisor salary 5000 Deprecation 1000 TOTAL MOH 13,000 Based on the information presented in the above tables, solve the following requirements: Requirment1: Calculate the Predetermined overhead cost? Note: 1- For Electricity & Depreciation use Allocation base Machine hours 2- For Rent & Supervisor salary use the Direct labor Hours fIll the above table of MOH based on the Allocation bae given
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