Question
Nathans Pizza Co. uses a job order cost system to determine the cost of making pizzas. Total estimated costs and expenses for the month of
Nathans Pizza Co. uses a job order cost system to determine the cost of making pizzas. Total estimated costs and expenses for the month of November are as follows: Question 1. 2 Points. Based on the cost table above, what is the estimated company overhead for the month of November? Circle the costs above that make up overhead and include the total estimated company overhead calculation (in $) below. Question 2. 2 Points. What is Papa Nathans predetermined overhead rate for the month of November? Assume Papa Nathan uses direct labor hours as the activity base to allocate factory overhead. Show your work. Use the following additional pizza information for November to answer Questions 3 and 4: Question 3. 3 Points. How much overhead is allocated to the production of 1 thick crust pizza, 1 thin crust pizza, and 1 deep dish pizza? Show the calculation for each type individually. Remember this is an overhead for the production of 1 pizza of each type. Thick Crust: Thin Crust: Deep Dish: Depreciation on Pizza Ovens 1,500$ Direct Labor (800 Labor Hours @ $20/Hour) 16,000$ Other Non-Traceable Ingredients (e.g., flour) 3,500$ Rent 2,000$ Traceable Ingredients (e.g., pepperoni, veggies, etc.) 12,000$ Utilities 1,000$ Pizza Type # Pizzas Direct Labor Time per Pizza Direct Material Cost per Pizza Thick Crust 2400 10 Minutes 2.50$ Thin Crust 1000 6 Minutes 1.20$ Deep Dish 1200 15 Minutes 4.00$
Question 4. 5 Points. What is the cost per unit (e.g., direct material, direct labor, and factory overhead) for each pizza type? Use the table below to complete your answer. Remember this is cost per unit (i.e., cost to make 1 pizza). Use any of the extra space below to show your calculations, if needed. Pizza Thick Crust Thin Crust Deep Dish DM per Pizza $ $ $ DL per Pizza $ $ $ OH per Pizza $ $ $ Cost per Pizza $ $
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