Question
Please double check my work based on the instructions provided below. I am not sure if I did this correctly. The local bakery has decided
Please double check my work based on the instructions provided below. I am not sure if I did this correctly.
The local bakery has decided they want to produce a new product to sell to customers. The bakery utilizes job order costing, and a job cost sheet will be used to summarize all costs. The bakery uses direct labor hours as the allocation base to apply manufacturing overhead to a job. The bakery estimates $50,000 in total manufacturing overhead costs and estimates 10,000 total direct labor hours in the year.
Requirements:
1. Develop and complete a job cost sheet.
2. Choose any bakery product to produce, find a recipe, and determine job (batch) size.
3. Break down and list all ingredients, research cost of ingredients, and calculate total direct material cost.
4. Determine production tasks (i.e., mixer, baker, quality control, etc.), assign each production task an hourly wage, and calculate total direct labor cost.
5. From the information provided in the project summary, calculate the bakery wide predetermined overhead rate for manufacturing overhead using direct labor hours as the allocation base.
6. Apply manufacturing overhead to the job.
7. Calculate total job cost.
8. Calculate unit product cost.
roduct Chocolate Chip Cookies ob Size Job Size: 1200 Makes 100 cookies Direct Materials Direct Labor Manufacturing Overhead Ingredient Cost per Unit Quantity Needed Total Amt Task Hours Rate Total Amt Hours Rate Total Amount Butter $6.50 1 Cup 6.5 Mixing 2 19 38 5 5 $25 Sugar $2.94 1.5 Cups 4.41 Baking 18 18 Eggs $4.25 2 Pieces 8.5 Packaging 16 16 Vanilla Extract $4.79 1 tbsp 4.79 Distributing 15 15 Salt $1.26 1 tsp 1.26 Total: 5 Total: 68 Total: 87 Flour $2.24 4 cups 8.96 Chocolate Chips $2.62 1 Cup 2.62 Baking Powder $1.48 1 tsp 1.48 Boxes (to distribute) $2.00 1 box Packaging for cookies $1.00 1 Package Total: 41.52 redetermined OH Rate 50,000/10,000=5 ost Summary Direct Materials $41.52 Direct Labor $87.00 Manufacturing Overhead $25.00 Total Job Cost $153.52 Unit Product Cost $0.13Step by Step Solution
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