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I have 2 questions that have multiple parts. It includes breakeven with a multiproduct company and then activity based costing. SHOW ALL WORK AND FORMULAS
I have 2 questions that have multiple parts. It includes breakeven with a multiproduct company and then activity based costing.
SHOW ALL WORK AND FORMULAS - IN EXCEL
Please answer in Excel, preferably each question on separate Excel sheets or please clearly separate the questions within one sheet. Please show all of your work so I can follow along so I can learn the information. Thank you!
Please check out the case study and comment back if you are able to complete it within the timeframe. Thank you.
Break-even with multiproduct company Dunkin donuts sells three different products, bagels, muffins & donuts. The owner of this small company is trying to determine the break-even point for each of the company's products. You have been hired as a consultant to assist with this project. Normal sales volume (annual) Unit selling price Variable cost per unit Bagels 105,000 $2.50 $1.00 Muffins 195,000 $2.00 $0.80 Donuts 280,000 $1.00 $0.40 Total fixed costs for the entire company are $270,000. The products are sold in a very competitive market so the company does not have any flexibility in raising its prices without losing a large number of customers. The company has no work in process or finished goods inventory. Requirements= (COMPLETE IN EXCEL) 1. What is the company overall breakeven point in sales dollars? 2. Of the total fixed costs of $270,000, $15,000 could be avoided if the bagel product line were dropped, $25,000 if the muffin product were dropped, and $50,000 if the donut product line were dropped. The remaining fixed expenses of $180,000 consist of common fixed costs such as salaries and rental of the building. a. What is the breakeven point in units for each product? b. If the company sells exactly the breakeven quantity of each product, what will be the overall profit of the company? Explain the result. Activity Based Costing Brandy Corporation produces three products, Product A, Product B, and Product C. The company has been using the same job-order costing system for the past 10 years. Their system applies indirect manufacturing costs based on the number of machine hours. The president of the company, Miss Brandy, has recently met with a business advisor who introduced her to the concept of activity based costing and has suggested that she assess her product costing system. You have been hired to do so. Direct materials per unit Direct labor per unit Sales price per unit Monthly production (in units) Month Overhead: Setup costs Quality control Maintenance Total Product A $15 $20 $50 500 $5,000 $15,000 $4,500 $24,500 Product B $30 $25 $90 900 Product C $35 $18 $100 1,200 # of setups # of inspections # of machine hours Product A 15 100 560 Product B 5 50 840 Product C 20 50 1,400 Total 40 200 2,800 Requirements= (COMPLETE IN EXCEL) 1. Prepare a product cost report based on the traditional costing system. You must include a table that details your overhead cost by product. Use the template below: Product A Product B Product C Total Setup costs Quality control Maintenance Total overhead costs *Your product cost report should be set up as below: Product A Product B Product C Total Sales Less: Direct Material Direct Labor Overhead costs Gross Margin Gross margin % 2. Prepare a product cost report based on an activity based costing system. Use the number of setups, number of inspections, and number of machine hours provided to allocate the costs for these activities. You must include a table that details your overhead cost by product. Use the same templates from requirement (1). 3. Write a memo to Miss Brandy explaining what you discovered during your analysis and any recommendations you may have for her. Use specific financial information from your analysis to support any recommendationsStep by Step Solution
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