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# 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.
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