Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Directions: Each student/partnership will be responsible for completing the case detailed below these instructions. This project should be done using the spreadsheet template I put

image text in transcribed
Directions: Each student/partnership will be responsible for completing the case detailed below these instructions. This project should be done using the spreadsheet template I put in Canvas. Note: You need to use formulas and cell references whenever possible. If you do not use formulas or cell references, I will deduct points. Part 1 of the assignment requires you to determine the cost of a unit of coffee (Mona Loa and Malaysian) using the traditional overhead allocation method. A unit of coffee is a one pound bag. The unit cost will include direct materials, direct labor, and Daold manufacturing overhead (as determined using the predetermined overhead rate). Basically, the only time you will not use formulas is when you enter given information. good e TO mov gnanno all 107 -TO Part 2 of the assignment requires you to determine the cost of a unit of coffee (Mona Loa and Malaysian) using the activity-based costing method. As with the traditional method, you will need to show direct materials, direct labor and manufacturing overhead (as determined using ABC). Part 2A is a comparison of both methods. Link the numbers to Parts 1 and 2 whenever possible. Show a side-by-side comparison of unit product costs calculated under each method (show the unit product cost of each type of coffee using both traditional and ABC costing). Unit product costs include direct materials, direct labor and manufacturing overhead costs on a per unit basis. Further, determine the changes in the profit margins for each bag of coffee under both methods (the sales price mark up % is given below). How much was the company losing per bag of the Malaysian coffee under the Traditional Method? 19q enron Part 3 requires you to write a memo on your findings. The memo should be addressed the president of Coffee Bean, Inc. The tone and format of the memo should be professional. Make recommendations based on your findings. Point out what caused differences between the two methods. Also, point out any potential problems you see with your recommendations (hint: see the part of the chapter on the limitations of ABC The memo should be less than 300 words. Presidents don't like to read long memos

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

11th Edition

1119594596, 978-1119594598

More Books

Students also viewed these Accounting questions