Question
Need help with this homework problem involving product cost estimate: Total overhead is 116,750 1.Prepare a complete product cost estimate for Buffalo Ale, Bismark Bock
Need help with this homework problem involving product cost estimate:
Total overhead is 116,750
1.Prepare a complete product cost estimate for Buffalo Ale, Bismark Bock and Four Heads Stout (See Exhibit 4) using: a. the plant-wide allocation based on direct-labor hours; b. an activity-based cost system.
Exhibit 4. Direct Cost Analysis for a Single Batch of each Beer Label
Buffalo Ale (Expected Yield = 22 cases) | ||||
Direct Materials: | ||||
Coopers Amber Malt | 50 kgs | @ | $0.60 | $30.00 |
Northumberland Malt | 50 kgs | @ | 0.30 | 15.00 |
Corn sugar | 5 kgs | @ | 0.25 | 1.25 |
Geleany hops | 1.75 kgs | @ | 1.00 | 1.75 |
Filtered water | 220 ltrs | @ | 0.03 | 6.60 |
Brewers yeast | 100 gms | @ | 0.08 | 8.00 |
Total DM Cost | $62.60 | |||
Direct Labor | 18 hrs | @ | $6.00 | 108.00 |
Overhead Costs | ? | |||
Total Product Cost per Batch | ? | |||
Cost per bottle | ? |
Bismark Bock (Expected Yield = 16 cases) | ||||
Direct Materials: | ||||
John Bull Dark Malt | 55 kgs | @ | $1.08 | $59.25 |
Newquay Brown Malt | 20 kgs | @ | 0.75 | 15.00 |
Perle hops | 2.87 kgs | @ | 1.50 | 4.30 |
Filtered water | 160 ltrs | @ | 0.03 | 4.80 |
Brewers yeast | 70 gms | @ | 0.08 | 5.60 |
Total DM Cost | $88.95 | |||
Direct Labor | 12 hrs | @ | $6.00 | 72.00 |
Overhead Costs | ? | |||
Total Product Cost per Batch | ? | |||
Cost per bottle | ? |
Four Heads Stout (Expected Yield = 18 cases) | ||||
Direct Materials: | ||||
Irish Stout Malt | 40 kgs | @ | $1.02 | $40.80 |
Strong Export Bitter Malt | 14 kgs | @ | 2.40 | 33.66 |
East Kent Goldings hops | 1.32 kgs | @ | 2.80 | 3.69 |
Filtered water | 180 ltrs | @ | 0.03 | 5.40 |
Brewers yeast | 75 gms | @ | 0.08 | 6.00 |
Total DM Cost | $89.55 | |||
Direct Labor | 13 hrs | @ | $6.00 | 78.00 |
Overhead Costs | ? | |||
Total Product Cost per Batch | ? | |||
Cost per bottle | ? |
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