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Happy cakes is the company producing special luxury cakes exactly matched to the customer's wishes offering two types, i.e. a wedding cake (type A) and

Happy cakes is the company producing special luxury cakes exactly matched to the customer's wishes offering two types, i.e. a wedding cake (type A) and a birthday cake (type B). For the next period, the production of 300 wedding cakes and 900 birthday cakes are planned. The material costs are planned to be 10 units per wedding cake and 6 units per birthday cake. The following overheads are assumed:

Cost Center

Overheads

Material (Sourcing Processes)

8.580

Party-service(Demand Analysis Processes)

55.860

Kitchen (Working hors)

28.380

Distribution (Delivery process)

20.400

Totals

Assignments:

Calculate the costs per unit and in total, for the wedding cake (A) and the birthday cake (B) applying a classical overhead (with percentage rates) calculation based on full cost accounting. Basis for the accounting of material- and manufacturing overheads is the costs directly attributable to the production overheads; the administration and distribution costs are based on the manufacturing costs.

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