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Fremont Troll House Cookies has been baking coconut cookies for 5 years. They have been selling their cookies for $ 5 each and they are
Fremont Troll House Cookies has been baking coconut cookies for years. They have been selling their cookies for $ each and they are wondering if they are charging the right price.
After categorizing the costs, we need to record the transactions for our business for the year. Assume Troll House Cookies uses process costing and allocates manufacturing overhead based on machine hours. Troll House Cookies expects to incur $ of manufacturing overhead costs, and to use direct labor hours during fiscal year Troll House Cookies reported the following inventories at May :
To help them determine a good price for their product, we must put together and analyze their statements.
Coconut Flakes Purchase $
Oven Depreciation $
Computer Insurance $
Bakery Security Guard Wages $
Flour Purchased $
Bakers Salaries $
Bakery Electricity $
Eggs Purchased $
Corporate Headquarters Heating $
Cookie Shipping $
Butter Purchased $
Baking Supervisor Salary $
Sanitary Gloves Purchased Worn by Bakers $
Sugar Purchased $
Beg. Direct Materials $
Ending Direct Materials $
Beg. WorkInProcess Inventory $
Beg. Finished Goods $
Ending WorkInProcess Inventory $
Ending Finished Goods $
Cookies Produced cookies
Cookies Sold cookies
Actual Direct Labor Hours Used hrs
Compare using a single plantwide allocation rate versus using ABC costing to see how that could effect cookie pricing.
a Calculate allocation rates for each activity cost pool.
b Calculate total overhead allocated for each type of cookie.
c Compare the amount of overhead allocated using a single plantwide rate to using ABC costing.
Please show all caculation leading up to the answers, and the final answers should be formatted according to how it is in the picture for easy understanding...Thank you
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