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8:37 chegg.com Please answer the following: 1) Compute the cost of a regular and special meal using the new overhead pools and cost drivers. What explains the differences between these costs and the ones in Exhibit 1? 2)What is your assessment of the overhead pools and cost drivers that Ms. Canard has chosen? How, if at all, might they be improved? Neighborhood Servings peting with and www AS working on www pring wing new way eing that comes The speaker was George Lanson, CEO of Neighborhood Servip.prition that produced and delivered meals to home throughout the greater BACKGROUND Neighborhood Servings (NS) had been in business for over 10 years began seals on whoelsagency providing dinners to elderly people and individuals who porarily homebound. Almost all of its clients were single and The lone. Die had expanded, although, based on market march into customer prices. Some vide its clients with only one meal a day. All meals were soldies ade meal for each day of the week and deliveries of seven als deeper work to each client clients then fronte a few of the meals for in the laterale During the past few years, NS had encountered some comfort. One de profits that had been accessful in the parts despanded their operations into the Kansas City ara la action, some of the local food stunts, real ring that they could use their kitchen staffs to provide basic fue for delivery begin providing meals in certain neighborhoods that were close to the In response, and after considerable debate, decided to detectahy meal. The main differences between NS's specialty meals and its replem special iety of standard ingredients, frequently including any powind vegetables ofen being mesties, and (2) because of a greater need for freshness delivered daily one per customer The new strategy seemed to be working. During the past yearly 80.000 of 3's 200.000 meals were specialy meals. The remainder THE COST ACCOUNTING SYSTEM NS's cost accounting system calcined the cost of me big is met and indirect costs, Direct costs included ingredients, packaging ik nad hlber. When anmel was introduced, NS's accounting staff spent considerable time determine what ingredi ents it contained and measuring the time it took the prep and locally prepare te is predients and cook the meal Prep staff were these chien works who washed and the ingre dients, prepared and took care of her tasks nended to stay cooking the meals Line staff cocked and ssembled the ingredients for each meal. Indirecte clasified into two categories de la pancy A&G included the costs of the administrative staff as was dependering sal divers and dietitians. Occupancy included rent, utilities and cleaning. Gus. This question hasn't been answered yet Ask an expert e chegg.com DOMOSS and then with 1.00 8:37 Indirect costs were classified into two categories administration and meal Gando.com pancy. A&G included the cost of the administrative staff, as was the purchasing, diven and dietitians. Ocupancy included rent, utilities, and cleaning. Gus lace. NS state plained the process be followed to amive taper meal cost For you, we had only but with my by hig Our studies have shown that AAG 200 persones about 20 percent of direct costs. In fact, cewekwa badged the bande dessere mens weightly more or less than these and welcome kelchen aber were higher than with the special meal she will wme quite well in showing the higher les of the ci Mr. Janeway's computation shows in L. As the detectos predients for special meals was about the times higher kichen labor costs. The result was higherowhead allocation. $11.70 as compared to only $6.90 for alarme PRICING POLICY As Exhibit 1 indicates, NS's pricing policy was to add 20 perc Since demand fluctuated lightly during the year, and since Mr. Larso believed that the 20 percent marga was about tight. He grade place sur les pun, inges. The res of these mom for hem where the comprovemente in quality and function Pricing Problems The problem at Mr. Las allded to in his peninga be a growing number of regular customers were complaining about NS's prices. Some what they had tried I was because of the complaints that Mr. Lancehallen whewhe quently had told him that the cost counting system was giving milling for There was Mr. Larson's com o only out furing his placed pecial meals priced too low THE CONSULTANT'S REPORT According to Ramona Cunard, Mr. Lance's consultant, the problems ccounting system was that overhead was divided into only pool, he called them Tweets with produced. The mowy, ANG for special meal. This me punching me te food stalls, which ng for why well Silly, the diet het endale fresh we wering each. The malingredient without com a product wa meer the year long as you dont where ally delivering specialmente al die veyalper delivery.com Se the persone con sale What we do Ms. Canad's overhead pools are contained in Exhibit 2. As this This question hasn't been answered yet Ask an expert 1 + 6 8:37 a chegg.com Ms. Canand's overhead pools are contained in the bet 2. As this shot indicates the remon 5447.300 from the original AG line and distributed in meegere sones perdesing ans, and delivery. Purchasing contained at ly the salaries of the purchasing portation sociated with trips to farms, and other purchasing for the dietitians, including bed their salaries and indeply the pool fordelivery Included not only drivers salaries, but depreciation on the delivery widesand expenses forfod. epain, maintenance, and ging. Mi. Canard commented The whole with wed to powder and became or peshentes, and comparing the prioriter Dienste wild to the who Ingrediehus The way of bereid wel the company's med payday Delivery was the pretty clearly men Now, the driver can take www. being dem. They come deliveryone where Ms. Cand's cost driver des centained below Number of pathe Special ingredie 'pety when you my w overhead pod dveh the George and they are. Il prodowe Wome will help esegeketly Nombre Mr. Larson, in thinking about the upcoming meeting. had a couple ofte fans, bet laitab forms to be She weco also the new. Os le compte ist with controlling to look howed ng so that we can produce the under. We will conto per ty NEIGHBORHOOD SERVINGS Exhibit 1. Cost Acting Duta $ 0.00 57.100 Total Cote Packaging materials Kitchen later (prep and line) Overhead Admin and General Occupancy Toal 750.800 120.000 Per meals Ingredients Packaging materials Kitchen later prep and line Admin and General Toul 1.20 5 3:53 021 529530 0.61 1.21 Number of meals Total revenue Total.com $ 3.27 5 1404 120 120.00 200.550 $ 1.000.250 SUS 52 MIT 3 K 338015 This question hasn't been answered yet Ask an expert 8:38 e chegg.com Islam ing so that we can producently upon Of con, the unde. Why NEIGHBORHOOD SERVINGS Edhibit 1. Cost Accounting Duta 1.000 Total Costs Ingredients Packaging materials Kitchen later prep and line) Overhead Admin und General Opancy 120.000 100 Permal con Ingredients Packaging material Kitchen labor (prep and line) Total Great coses Admin and General Occupancy Regular 5 1:20 $ 028 5290 121 $ Price Number of me 120.950 Total.com S 15 52 1106 531330 1.2 506 5 1669 5335 Exhibit 2. New Castle Men of Total Cost Ather $426,200 57.000 3415 57 . Ingredients Packaging materiale Kitchen later op and Time Admin and General Occupancy Purchasing Dieticians Delivery Total 1979 1. 754.00 182.500 7:55 SEXO Show transcribed image text This question hasn't been answered yet Ask an expert K + 6 8:37 chegg.com Please answer the following: 1) Compute the cost of a regular and special meal using the new overhead pools and cost drivers. What explains the differences between these costs and the ones in Exhibit 1? 2)What is your assessment of the overhead pools and cost drivers that Ms. Canard has chosen? How, if at all, might they be improved? Neighborhood Servings peting with and www AS working on www pring wing new way eing that comes The speaker was George Lanson, CEO of Neighborhood Servip.prition that produced and delivered meals to home throughout the greater BACKGROUND Neighborhood Servings (NS) had been in business for over 10 years began seals on whoelsagency providing dinners to elderly people and individuals who porarily homebound. Almost all of its clients were single and The lone. Die had expanded, although, based on market march into customer prices. Some vide its clients with only one meal a day. All meals were soldies ade meal for each day of the week and deliveries of seven als deeper work to each client clients then fronte a few of the meals for in the laterale During the past few years, NS had encountered some comfort. One de profits that had been accessful in the parts despanded their operations into the Kansas City ara la action, some of the local food stunts, real ring that they could use their kitchen staffs to provide basic fue for delivery begin providing meals in certain neighborhoods that were close to the In response, and after considerable debate, decided to detectahy meal. The main differences between NS's specialty meals and its replem special iety of standard ingredients, frequently including any powind vegetables ofen being mesties, and (2) because of a greater need for freshness delivered daily one per customer The new strategy seemed to be working. During the past yearly 80.000 of 3's 200.000 meals were specialy meals. The remainder THE COST ACCOUNTING SYSTEM NS's cost accounting system calcined the cost of me big is met and indirect costs, Direct costs included ingredients, packaging ik nad hlber. When anmel was introduced, NS's accounting staff spent considerable time determine what ingredi ents it contained and measuring the time it took the prep and locally prepare te is predients and cook the meal Prep staff were these chien works who washed and the ingre dients, prepared and took care of her tasks nended to stay cooking the meals Line staff cocked and ssembled the ingredients for each meal. Indirecte clasified into two categories de la pancy A&G included the costs of the administrative staff as was dependering sal divers and dietitians. Occupancy included rent, utilities and cleaning. Gus. This question hasn't been answered yet Ask an expert e chegg.com DOMOSS and then with 1.00 8:37 Indirect costs were classified into two categories administration and meal Gando.com pancy. A&G included the cost of the administrative staff, as was the purchasing, diven and dietitians. Ocupancy included rent, utilities, and cleaning. Gus lace. NS state plained the process be followed to amive taper meal cost For you, we had only but with my by hig Our studies have shown that AAG 200 persones about 20 percent of direct costs. In fact, cewekwa badged the bande dessere mens weightly more or less than these and welcome kelchen aber were higher than with the special meal she will wme quite well in showing the higher les of the ci Mr. Janeway's computation shows in L. As the detectos predients for special meals was about the times higher kichen labor costs. The result was higherowhead allocation. $11.70 as compared to only $6.90 for alarme PRICING POLICY As Exhibit 1 indicates, NS's pricing policy was to add 20 perc Since demand fluctuated lightly during the year, and since Mr. Larso believed that the 20 percent marga was about tight. He grade place sur les pun, inges. The res of these mom for hem where the comprovemente in quality and function Pricing Problems The problem at Mr. Las allded to in his peninga be a growing number of regular customers were complaining about NS's prices. Some what they had tried I was because of the complaints that Mr. Lancehallen whewhe quently had told him that the cost counting system was giving milling for There was Mr. Larson's com o only out furing his placed pecial meals priced too low THE CONSULTANT'S REPORT According to Ramona Cunard, Mr. Lance's consultant, the problems ccounting system was that overhead was divided into only pool, he called them Tweets with produced. The mowy, ANG for special meal. This me punching me te food stalls, which ng for why well Silly, the diet het endale fresh we wering each. The malingredient without com a product wa meer the year long as you dont where ally delivering specialmente al die veyalper delivery.com Se the persone con sale What we do Ms. Canad's overhead pools are contained in Exhibit 2. As this This question hasn't been answered yet Ask an expert 1 + 6 8:37 a chegg.com Ms. Canand's overhead pools are contained in the bet 2. As this shot indicates the remon 5447.300 from the original AG line and distributed in meegere sones perdesing ans, and delivery. Purchasing contained at ly the salaries of the purchasing portation sociated with trips to farms, and other purchasing for the dietitians, including bed their salaries and indeply the pool fordelivery Included not only drivers salaries, but depreciation on the delivery widesand expenses forfod. epain, maintenance, and ging. Mi. Canard commented The whole with wed to powder and became or peshentes, and comparing the prioriter Dienste wild to the who Ingrediehus The way of bereid wel the company's med payday Delivery was the pretty clearly men Now, the driver can take www. being dem. They come deliveryone where Ms. Cand's cost driver des centained below Number of pathe Special ingredie 'pety when you my w overhead pod dveh the George and they are. Il prodowe Wome will help esegeketly Nombre Mr. Larson, in thinking about the upcoming meeting. had a couple ofte fans, bet laitab forms to be She weco also the new. Os le compte ist with controlling to look howed ng so that we can produce the under. We will conto per ty NEIGHBORHOOD SERVINGS Exhibit 1. Cost Acting Duta $ 0.00 57.100 Total Cote Packaging materials Kitchen later (prep and line) Overhead Admin and General Occupancy Toal 750.800 120.000 Per meals Ingredients Packaging materials Kitchen later prep and line Admin and General Toul 1.20 5 3:53 021 529530 0.61 1.21 Number of meals Total revenue Total.com $ 3.27 5 1404 120 120.00 200.550 $ 1.000.250 SUS 52 MIT 3 K 338015 This question hasn't been answered yet Ask an expert 8:38 e chegg.com Islam ing so that we can producently upon Of con, the unde. Why NEIGHBORHOOD SERVINGS Edhibit 1. Cost Accounting Duta 1.000 Total Costs Ingredients Packaging materials Kitchen later prep and line) Overhead Admin und General Opancy 120.000 100 Permal con Ingredients Packaging material Kitchen labor (prep and line) Total Great coses Admin and General Occupancy Regular 5 1:20 $ 028 5290 121 $ Price Number of me 120.950 Total.com S 15 52 1106 531330 1.2 506 5 1669 5335 Exhibit 2. New Castle Men of Total Cost Ather $426,200 57.000 3415 57 . Ingredients Packaging materiale Kitchen later op and Time Admin and General Occupancy Purchasing Dieticians Delivery Total 1979 1. 754.00 182.500 7:55 SEXO Show transcribed image text This question hasn't been answered yet Ask an expert K + 6
