Please use data information from pages 3-5 , to help answer for last page. THANK YOU!

Nikki started by talking with her parents about some of the estimated sales and costs that they thought would incur for the month of September. Here are some of those estimates: Total Sales price (per unit) Expected sales units (for September) Apple Pies $25.00 7,500 Caramel Apples $8.50 9,500 17,000 Total $21,900.00 Expected Manufacturing costs: Fixed OH (per month) Direct labor (per unit) Direct materials (per unit) Variable OH (per unit) Apple Pies $17,625.00 $3.75 $3.00 $2.25 Caramel Apples $4,275.00 $2.10 $2.00 $0.90 Expected Marketing and admin costs: Fixed costs (per month) Variable costs (per unit) $6,675.00 $5,250.00 $1.45 $1,425.00 $0.35 Additionally, Sally informed her that the farm received a special order to sell their apple pies and caramel apples at the local county fair in September. Sally wanted to sell 3,500 pies and 4,500 caramel apples for a discounted price of $20.00 and $7.50, respectively. With the number of staff and the size of the bakery, Nikki determined that the maximum capacity for the bakery is 3,800 labor hours a month. At the current projected sale amounts she expects that they'll need 3,205 hours to meet their regular sales volume. After review of the salaries of all the staff, Nikki determined that the average hourly wage was $15.00. Ned was also concerned about how much it cost to keep apple pie inventory on hand at the end of the month, caramel apples should be sold within a couple days, so no inventory is left at the end of the month. Since there is a limited shelf life for the apple pies, Ned and Sally try and keep the ending inventories in line with next month's expectations. They estimated that they'd have to start 8,000 apple pies in order to have 1,000 apple pies in-process at the end of the month and 500 finished pies. At the end of August there were 500 pies that were in-process and no finished pies. The variable costs associated with these inventories were as follows: Beginning WIP inventory September costs DM $1,675 $20,000 Conversion $3,500 $38,500 And the conversion cost for the in-process pies is 50% completed and 100% for direct materials. (Use the expected for September Apple Pie Sales for determining units started and units completed and transferred out) September was a success for the bakery! They didn't complete the special order but focused on normal sales and with some overtime baked a few more pies. Here were the results for the actual sales and costs at the end of the month. (The actuals as presented below are only to be use for Problem 6.) Caramel Total Apple Pies Apples Actual Sales price (per unit) $25.50 $9.00 Actual sales units 18,750 8,250 10,500 Actual variable manufacturing OH $123,625 Actual variable marketing and admin cost $17,150 Actual fixed manufacturing costs $20,125 Actual marketing and admin costs $6,750 Apple Hilly Farms a. Total Profit for the month of September Revenue Variable costs Contribution margin Fixed costs Operating profit $ $ $ Apple Ples Caramel Apple 187,500.00 $ 80.750.00 $ 78,375.00$ 50,825.00 $ 109, 125.00 $ 29,925.00 $ $ $ Total 268,250.00 129,200.00 139,050.00 28,575.00 110.475.00 b. Compute the weighted average contribution margin per unit Weights: Apple Ples 7,500 Total Sales 17.000 Percentage Weight 44.12% Caramel Apples 9,500 Total Sales 17.000 Percentage Weight 55.88% Contribution Weighted Average Marsin per unit Weight CM Apple Pie $ 14.55 44.12% $ 6.42 Caramel Apples 5 3.15 55.88% $ Weighted average contribution margin per units 8.18 1.76 c. Compute breakeven: Fixed Costs 28,575 Contrib. Margin 8.18 Breakeven 3,494 Total Breakeven 3,494 Apple Pie Caramel Apples Weight 44.12% 55.88% Breakeven per Unit 1,541 1,952 3,494 3,494 a. Labor hours required for special order Product Apple Pies Caramel Apples Labor cost Labor hours per unit Wage rate per hour per unit $ 3.75$ 15.00 0.25 $ 2.10 $ 15.00 0.14 Labor hours needed for estimated production 1,875.00 1,330.00 Special order Total hours quantity required Apple Pies 3,500 875 Caramel Apples 4,500 630 Capacity used for special order 1,505 b. Incremental profit/(loss) on special order Differential revenues Apple Pies Caramel Apples Special order units 3,500 4,500 Selling price $ 20.00 $ 7.50 Incremental revenue $ 70,000 $ 33,750 $ Differential costs Special order units 3,500 4,500 Total variable costs $ 10.45$ 5.35 Differential cost $ 36,575 $ 24,075$ Differential profit/(loss) $ Total 103,750 60,650 43,100 If labor hours for the additional 8,000 units combined, then regular production will need to be reduced for the product with the lowest contribution margin Bakery capacity (in direct-labor hours) Capacity used for special order Capacity available for regular orders Capacity needed for apple pies Capacity needed for caramel apples Hours over capacity for regular orders 3,800 1.505 2295 1.875 1,330 (910) c. Compute contribution margin per hour for regular orders Apple Pies Caramel Apples Revenue per unit $ 25.00 $ 8.50 Variable cost per unit $ 10.45$ 5.35 Contribution margin per unit S 14.55$ 3.15 Direct-labor hours per unit 0.25 0.14 Contribution margin per hour $ 58.20 $ 22.50 d. Compute contribution margin lost from regular sales Lowest contribution margin per hour $ 22.50 Hours over capacity for regular orders (910.00) Total lost contribution margin $ (20.475.00) Total lost production in units (6.500.00) .Total contribution margin with special order Special Order Apple Pics Caramel Apples Total CM per unit $ 9.55$ 2.15 Number of units 3.500 4,500 Special order CM $ 33,425.00 $ 9,675.00 $ 43,100.00 Regular Production CM per unit $ 14.55$ 3.15 Number of units 7,500.00 3.000.00 Reg.dar production CM $ 109,125.00 $ 9,450.00 $ 118,575.00 Total contribution margin $ 161.675.00 Regular production contribution margin $ 139,050.00 Difference in profit with special order $ 22.625.00 a Compute total Apple Pie units to be accounted for Physical Units Equivalent Units Materials Conversion Flow of production units: Units to be accounted for Beginning WIP inventory Units started in September Total units to be accounted for 500 Units to be accounted for Total transferred out Units in Ending WIP inventory Total units to be accounted for b. Compute total Apple Pie costs to be accounted for Total Costs Materials Conversion Costs to be accounted for Costs in beginning WIP inventory Current period costs Total costs to be accounted for Costs per equivalent unit Materials Conversion Costs accounted for Costs assigned to units transferred out: Materials Conversion Total costs of units transferred out Costs assigned to ending WIP inventory: Materials Conversion Total costs of ending WIP inventory Total costs to be accounted for