Excel Project #1 Rose Meyer has decided to open an at-home bakery called Rosewater Baked Goods. Rose plans to sell cookies, cupcakes and specialty breads every weekend at a local farmer's market. After much consideration, Rose has decided to use the three recipes below for her business. Please review the recipe cards for information on ingredients and labor required as well as the yield from each batch. Chocolate Chip Cookies: Recipe Card #1 Chocolate Cupcakes: Recipe Card #2 Banana Bread: Recipe Card #3 After some research, Rose has determined the price of ingredients and compiled a list at the below link. Ingredient Prices Rose has determined she will need to buy new bakery equipment for a total of $6,000. The bakery equipment has a 5 year useful life and $1,000 salvage value. She also wants to buy a Point-of-Sale (POS) system so that she can accept credit cards. The hardware for the POS system costs $2,500 and has a 5 year useful life and no salvage value. Rose will also need to pay a $50 monthly fee for the POS software. Rose plans to spend $100 per month on advertising, $300 per month on insurance, and $200 per month on rent for a stand at the local farmer's market. Variable overhead (parchment paper, cooking spray, etc.) is $0.75 per unit. Rose plans to do all of the mixing, baking, decorating, and packaging herself at a rate of $15 per hour. She has hired her daughter, Sue, to run the stand at the farmer's market for her at a rate of $10 per hour. The farmer's market is open on Saturdays and Sundays from 8am to 3pm for 50 weeks during the year. Sue will need 30 minutes to set up the stand each day and 30 minutes to take down the stand each day. Sue's hours do not fluctuate based on customer activity or production. The farmer's market Rose plans to sell her baked goods at is in a high-traffic area and very popular, therefore Rose expects to sell 36,000 units during the year. One unit can be a cookie, a cupcake or a slice of bread. For her first year in operations, Rose has hired you to assist with the bookkeeping. She has come up with a list of tasks she would like your help with which you can find on the subsequent tabs. Please review and complete the tasks as requested. General Hints A "batch" is one recipe card, i.e. 24 cookies, 24 cupcakes or 12 slices of bread. Make sure your calculations are consistent, i.e. in batches or on a per unit basis. Make use of cell references and formulas wherever possible. Round calculations to 2 decimal points (typically only necessary when using division). You may find it helpful to go through the additional tabs of info first to do calculations ahead of the task tabs so you can reference back to them. Task #1 The first task Rose has asked you to help with is classifying the costs she identified on the first tab. Please classify each cost as a product cost or an SG&A cost. Also indicate whether the cost would be recorded as an asset or an expense. Finally, indicate whether the cost is fixed or variable relative to the number of units produced. Select the classification from the dropdown menu in each column. Cost Description Advertising Depreciation - Bakery Equipment Ingredients for Baked Goods Insurance Depreciation- POS System POS System Monthly Fee Rent for Farmer's Market Stand Variable Overhead Wages for Rose (Production) Product or SG&A Asset or Expense Fixed or Variable Wages for Sue (Sales Staff) *Hint: You may find it helpful to do the math for total annual fixed costs here so you can reference it later. Task #2 The next task Rose has asked for your help with is calculating the product cost per unit for each baked good item she wants to sell. Using information from the first tab, the recipe cards and the ingredient prices list, calculate the product cost per unit for each item below. Assume that depreciation is allocated based on estimated units produced. Note that you may not need all spaces provided. Product Cost Description Chocolate Chip Cookies Chocolate Cupcakes Banana Bread Total Per Unit *Hint: Remember the 4 parts of product cost (absorption costing). Reference other tabs where applicable and round your calculations to 2 decimals