1. For each product cost you identified, how would you track the cost? For example, would you track it by individual job, batch, production step, activity, general factory overhead, etc.? Separate raw materials into main ingredients and flavor additives. Also, separate bakery labor into four categories: production line (includes mixing, filling and baking), packaging, sanitation and warehouse.

Table 1: Selected Financial Data (actual cost and revenue data for May 2020) Cost Category Behavior May 2020 Sales $766,667 Expenses: Raw Materials Variable $327,934 Bakery labor Mixed $158,767 Administration Salaries Fixed $41,367 Supplies Variable $3,833 Freight & Shipping-In Variable $4,907 Freight & Shipping-Out Variable $64,707 Utilities - Electricity Variable $9,813 Utilities - Gas (ovens) Variable $3,067 Water Variable $920 Repairs & Maintenance Fixed $4,293 Rent expense Fixed $19,167 Telephone & Internet Fixed $2,300 Co-owners' salary Fixed $25,300 Brokers' commissions Variable $30,667 Total Expenses $697,042 Operating Profit $69,625 Income Tax $22,280 Net operating income $47,345 Unit volume 64,500 Average Operating Assets $5,500,000 Minimum Rate of Return 8.00% Notes to Selected Financial Data Raw Materials: Includes main ingredients and flavor additives. Main ingre cost items such as flour, sugar, eggs, nuts and fruit that appear on the pack are relatively low-dollar cost items and a small part of the weight of the pie and certain oils that don't always appear on the package label. laries and ta