Question
Hello, please help me with task ASAP: Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch
Hello, please help me with task ASAP:
Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1 000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available:
Macaroon
Sugar
Buttercream
Projected sales in units
500 000
800 000
600 000
PER UNIT data:
Selling price ($)
0,8
0,8
0,6
Direct materials ($)
0,2
0,12
0,14
Direct labor ($)
0,04
0,06
0,02
Hours per 1000-unit batch:
Direct labor hours
2
1
1
Oven hours
1
0,9
1
Packaging hours
0,5
0,7
0,5
Total overhead costs and activity levels for the year are estimated as follows:
Activity
Overhead costs
Oven
203 840
Packaging
210 900
Required:
Using the ABC system, for the Sugar cookie compute the estimated operating profit per thousand cookies.
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