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Posted on Jul 16, 2024

DOLCI TOTAL COUNTER SALES CUSTOM CAKES RESTAURANT SALES FROZEN Exhibit 1 DOLCI INCOME STATEMENT (IN MILLIONS) Revenues Total revenue Direct costs Materiais $119,000 $32,000 $15.000

DOLCI TOTAL COUNTER SALES CUSTOM CAKES RESTAURANT SALES FROZEN Exhibit 1 DOLCI INCOME STATEMENT (IN MILLIONS) Revenues Total revenue Direct costs Materiais $119,000 $32,000 $15.000 $42.000 $19,000 12.800 4,500 10.500 7,500 35,300 2.610 10 12.10 100 4.600 1,500 12.000 1.000 1,500 37,910 81.000 Marketing and sales Total Direct Couts Revenue Less Direct Costa Indirect operating expenses General overhead occupancy, admiration Production staff Delivery Total Indirect operating expenses income before Profit Center Salaries Prot Center Slanes Net income to Shareholder 35.600 15.700 9.520 10,820 270 4 DOLCI Exhibit 2 PRODUCTION STAFF (Hours) TOTAL RESTAURANT SALES COUNTER SALES 200 FROZEN General labor Pastry Cheats and Cultury Art and Design Total Direct Labor Hours 900 220 32 CUSTOM CAKES 310 80 TO 30 5 310 60 2 280 80 O 1202 225 200 372 340 Exhibits GENERAL OVERHEAD RESOURCE COST POOL Facy (property deprecation Administration purchasing and support Uits Total SE OF POCK COST DRIVER $12.642 square feet of space 3.678 Number of purchase orders 37 203 med att $35.000 TOTAL COUNTER SALES 10.70 CUSTOM CAKES 7.820 30.000 GENERAL OVERHEAD COST DIVER Sefer Number of purchase orden timated towali RESTAURANT TALES 2.603 11 12.30 FROZEN 2.602 33 6.100 971.000 107.000 DOLCI Exhibits PROOUCTION STAFF Gorral Laborers Pastry Chefs and Culinary Art and De Total Production that $ 534.900 1995 1.785 535.100 Exhibit DELIVERY (Mileage TOTAL COUNTER LALES CUATOM CAKES RESTAURANT SALES FROZEN 14.274 4,500 2.750 1200 5.524 REQUIRED 1) Prepare the revised set of cost estimates and profit-center Income Statements using the Direct- Labor Hour approach, Method 1 allocation. 2) Prepare the revised set of cost estimates and profit-center Income Statements using the Multiple Cost Driver / Activity-Based Costing approach, Method 2 allocation. 3) Analyze the newly produced information and assess its implications for the managers. a. What decisions might managers make with this new information? b. What management action, if any, would you sugest? Prepare your case response using the five steps of strategie decision making. Only steps one through four are relevant since time-serles data is not available. DOLCI TOTAL COUNTER SALES CUSTOM CAKES RESTAURANT SALES FROZEN Exhibit 1 DOLCI INCOME STATEMENT (IN MILLIONS) Revenues Total revenue Direct costs Materiais $119,000 $32,000 $15.000 $42.000 $19,000 12.800 4,500 10.500 7,500 35,300 2.610 10 12.10 100 4.600 1,500 12.000 1.000 1,500 37,910 81.000 Marketing and sales Total Direct Couts Revenue Less Direct Costa Indirect operating expenses General overhead occupancy, admiration Production staff Delivery Total Indirect operating expenses income before Profit Center Salaries Prot Center Slanes Net income to Shareholder 35.600 15.700 9.520 10,820 270 4 DOLCI Exhibit 2 PRODUCTION STAFF (Hours) TOTAL RESTAURANT SALES COUNTER SALES 200 FROZEN General labor Pastry Cheats and Cultury Art and Design Total Direct Labor Hours 900 220 32 CUSTOM CAKES 310 80 TO 30 5 310 60 2 280 80 O 1202 225 200 372 340 Exhibits GENERAL OVERHEAD RESOURCE COST POOL Facy (property deprecation Administration purchasing and support Uits Total SE OF POCK COST DRIVER $12.642 square feet of space 3.678 Number of purchase orders 37 203 med att $35.000 TOTAL COUNTER SALES 10.70 CUSTOM CAKES 7.820 30.000 GENERAL OVERHEAD COST DIVER Sefer Number of purchase orden timated towali RESTAURANT TALES 2.603 11 12.30 FROZEN 2.602 33 6.100 971.000 107.000 DOLCI Exhibits PROOUCTION STAFF Gorral Laborers Pastry Chefs and Culinary Art and De Total Production that $ 534.900 1995 1.785 535.100 Exhibit DELIVERY (Mileage TOTAL COUNTER LALES CUATOM CAKES RESTAURANT SALES FROZEN 14.274 4,500 2.750 1200 5.524 REQUIRED 1) Prepare the revised set of cost estimates and profit-center Income Statements using the Direct- Labor Hour approach, Method 1 allocation. 2) Prepare the revised set of cost estimates and profit-center Income Statements using the Multiple Cost Driver / Activity-Based Costing approach, Method 2 allocation. 3) Analyze the newly produced information and assess its implications for the managers. a. What decisions might managers make with this new information? b. What management action, if any, would you sugest? Prepare your case response using the five steps of strategie decision making. Only steps one through four are relevant since time-serles data is not available