Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

# of Cupcakes 77,000 Price Per Cake $3.05 Raw materials Variable $39,200 All are purchased as needed to avoid spoilage and to have the freshest

# of Cupcakes 77,000
Price Per Cake $3.05
Raw materials Variable $39,200 All are purchased as needed to avoid spoilage and to have the freshest ingredients
Bakery wages Variable $57,000 They do all of the baking
Supervisors salary Fixed $34,000 Supervisor does not do any baking
Office personnel Fixed $22,750
Tracys salary Fixed $37,000 She considers herself CEO
Salesman's salary Variable $25,000 He is paid based on number of cupcakes sold to special events
Supplies Variable $4,000 All used in the bakery
Utilities (electric) Variable $4,500 85% is for the bakery and 15% is for the administrative office
Utilities (Gas) for ovens Variable $2,000 All for bakery
Water Variable $3,200 All for bakery
Repairs and maintenance Fixed $4,000 All for bakery
Rent expense Fixed $5,000 80% is for the bakery and 20% is for the administrative office
Telephone and internet Fixed $1,500 All for administrative office
Total $239,150
Factory Overhead
Supervisors salary $34,000
Supplies $4,000
Utilities (electric) $3,825
Utilities (Gas) for ovens $2,000
Water $3,200
Repairs and maintenance $4,000
Rent expense $4,000
Total $55,025

Period Costs
Office personnel $22,750
Tracys salary $37,000
Salesman's salary $25,000
Utilities (electric) $675
Rent expense $1,000
Telephone and internet $1,500
Total $87,925
DM per cupcake $0.51
DL per cupcake $0.74
VFO per cupcake $0.17
FFO per cupcake $0.55
Cost per cupcake $1.97

Create income statement and variable income statement.

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_2

Step: 3

blur-text-image_3

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

The Impact Of Globalization On International Finance And Accounting

Authors: David Procházka

1st Edition

3319687611, 9783319687612

More Books

Students also viewed these Accounting questions

Question

1. Explain the characteristics of a destination.

Answered: 1 week ago

Question

How would you handle this situation?

Answered: 1 week ago