Case: Cost System Considerations for CANADA SNOWCONES LTD. Canada Snowcones itd.) owned and operated 20 retail frozen yogurt stores spread throughout Southern Ontaria from Toronto to Windhor custores sold only hity premium on yourt. They offered an assortment of 3 fferent frozen yogurtours. A significant amount of the flavours were special, such as Peanut Butter Bacon Charcoal Susand Tropical Cheese Sensations. However, as sold a few of the classroom flavours, such as vanila, mik chocolate, mint, and other singular fruit flavours. While some of the flavours were very popular, there were so some of the more per favours that had low to terms of CSL produced its own frozen yogurt. The founder of the company, Samartha Reynolds had originally made the yogurt in her basement. But eventual growing demand led to Samanthair of factory for produtos CSL www.Samantha was able to afford automated but more costly production equipment that blended the flavours and the docen yogurt for freezing CSS most picant producten co were formats particularly yogurt, brown sugar and the special favour ingredients, and for the purchase operation and maintenance of production equipment All of us products had the same retail prices customers could choose or combine any flavours by scoops, Samantha set the prices to generate on a markup of 100% on average production costs 2009 induded manufacturing overhead (MH of $450.000. To estimate product costs. Samantha soat MOH cost to products based on a proportion of the direct labour costs used in the production process costs for 2015 was $200.000, o Samantha charged the overhead to products at a rate of MOHDL costs Last week, Laura Horton, Samantha's babysitter for her daughter and the roof a large production timised the main was not optimering was that the expenses for produces Tours were not uniform she thought those inconsistencies should be reflected in the prices changed samine would has the combination of ours sold varied Laura proposed that Samantha reestimate product costs using activity based costing the recommended that Samantha dentity the major activities who were included in the company's Most Then she should be costs to products based on the products consumption of each of those cinese, Samantha prepared the information presented below in Table Samantha decided to lure your consulting firm to help calculate the costs of two demonstrative spent to see activity based costing system suppested produced any cant contra Sheet take her best estimate as to where she might find the most material differences if any sited. After Samantha described the products to her Laura sugested that she use Peanut Butter Bacon and Chocolate as the test product examples. Table 2 provides data relevant to the two selected products PU 1 5 Ev D 11 1. . 4000 Case: Cost System Considerations for CANADA SNOWCONES LTD. Canada Snowcones itd.) owned and operated 20 retail frozen yogurt stores spread throughout Southern Ontaria from Toronto to Windhor custores sold only hity premium on yourt. They offered an assortment of 3 fferent frozen yogurtours. A significant amount of the flavours were special, such as Peanut Butter Bacon Charcoal Susand Tropical Cheese Sensations. However, as sold a few of the classroom flavours, such as vanila, mik chocolate, mint, and other singular fruit flavours. While some of the flavours were very popular, there were so some of the more per favours that had low to terms of CSL produced its own frozen yogurt. The founder of the company, Samartha Reynolds had originally made the yogurt in her basement. But eventual growing demand led to Samanthair of factory for produtos CSL www.Samantha was able to afford automated but more costly production equipment that blended the flavours and the docen yogurt for freezing CSS most picant producten co were formats particularly yogurt, brown sugar and the special favour ingredients, and for the purchase operation and maintenance of production equipment All of us products had the same retail prices customers could choose or combine any flavours by scoops, Samantha set the prices to generate on a markup of 100% on average production costs 2009 induded manufacturing overhead (MH of $450.000. To estimate product costs. Samantha soat MOH cost to products based on a proportion of the direct labour costs used in the production process costs for 2015 was $200.000, o Samantha charged the overhead to products at a rate of MOHDL costs Last week, Laura Horton, Samantha's babysitter for her daughter and the roof a large production timised the main was not optimering was that the expenses for produces Tours were not uniform she thought those inconsistencies should be reflected in the prices changed samine would has the combination of ours sold varied Laura proposed that Samantha reestimate product costs using activity based costing the recommended that Samantha dentity the major activities who were included in the company's Most Then she should be costs to products based on the products consumption of each of those cinese, Samantha prepared the information presented below in Table Samantha decided to lure your consulting firm to help calculate the costs of two demonstrative spent to see activity based costing system suppested produced any cant contra Sheet take her best estimate as to where she might find the most material differences if any sited. After Samantha described the products to her Laura sugested that she use Peanut Butter Bacon and Chocolate as the test product examples. Table 2 provides data relevant to the two selected products PU 1 5 Ev D 11 1. . 4000