Question
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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