Operational information

Sydneys Bakery applies overhead on the basis of Bakers Direct Labour hours. The estimated Baker DL hours for the year are 1,500 hours. The estimated manufacturing overhead is $126,000. For the reporting period, the actual overhead costs totalled $132,480 and actual Baker DL hours were recorded as 1,560.

Operational results

Sydneys Bakery has provided you with activity and respective costs for three months below.

Requirements:

Classify the various costs in relation to the production and sale of cinnamon buns (one of several goods produced and sold).

• Any one of the costs may be classified under several classification types.
• A table has been included at the end of this document which you can copy and past into your response for convenience. Place an x in the respective cell representing the classification type.

January February March 2,800 per unit 3,400 per unit 3,000 per unit $ 18,480 $ 6.60 $ 22,440 $ 6.60 $ 19,800 6.60 $ (6,160) $ (2.20) $ (7,480) $ (2.20) $ (6,600) $(2.20) $ 12,320 $ 14,960 $ 13,200 ] 3 Sales in units Sales revenue Less: COGS Gross Margin Less Operating XP Insurance Rent Dep'n Advertising Salaries Total Oper XP Net Income $ 800 $ 0.29 $ 800 $ 0.24 $ 800 $ 1,800 $ 0.64 $ 1,800 $ 0.53 $ 1,800 $ 700 $ 0.25 $ 700 $ 0.21 $ 700 $ 640 $ 0.23 $ 670 $ 0.20 $ 650 $ 7,100 $ 2.54 $ 7,850 $ 2.31 $ 7,350 $(11,040) $(11,820) $(11,300) $ 1,280 $ 3,140 $ 1,900 0.271 0.60 0.23 0.22 2.45 Cost Fixed Variable Direct Indirect Period Product Period Costs DM DL MOH Remain constant in total dollar Total dollar amount varies in direct proportion to changes in activity level Pertains to a certain cost object and can be traced to that cost object Cannot be easily and conveniently traced to a cost object All costs that are involved in acquiring or making a product Materials that go into the final product Easily traced to individual units of product Other costs related to manufacturing that are not DL or DM Costs not included in product costs (non- manufacturing costs) Annual fee Annual Business License Fee Rent for bakery Utilities for bakery Part of $3500/mg $1280/mg Flour $28/5 dez Sugar $12/5 dez Yeast $8/5 doz Butter $5/5 doz $3/5 doz part of Eggs Vegetable Oil (for spraying pans) Accounting Consultant $27/5 doz $35/hr x 6 Wages - Baker $210 Wages - Dish Washer Part of $15/hr x 8 $120 Wages - Counter Sales staff Part of $15/hr x 8 $120 Insurance for bakery Part of $3500/mg 5 10 6 8 13 5 1 7 1