Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Located in a small town in upstate New York, Terry's Bakery operates a facility that makes pies for retail sale. The facility has the capacity

Located in a small town in upstate New York, Terry's Bakery operates a facility that makes pies for retail sale. The facility has the capacity to make 40,200 pies annually. The plant has only two customers, Panama Food Mart and East Street Coffee. Annual orders for Panama total 20,100 pies, and annual orders for East Street total 10,050 pies. Terry's makes the pies fresh every day and carries no inventory. It also ensure that the customers only sell freshly made pies as well. Variable manufacturing costs are $4.55 per pie, and annual fixed manufacturing costs are $108,540.
Required:
What cost per pie should the cost system report?
Note: Round your answers to 2 decimal places.
\table[[Cost per pie at capacity,],[Cost per pie at demand,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

11th Edition

0273708708, 9780273708704

More Books

Students also viewed these Accounting questions

Question

Stuxnet was an attack on what type if system architecture

Answered: 1 week ago