Question 15

Using the ABC system, for the sugar cookie compute the estimated operating profit per thousand cookies (round to the nearest dollar).

Question 12 0.5 pts Use the following information to answer questions 12 to 15. Aunt Vivian's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available: Macaroon Sugar Buttercream Projected sales in units 500,000 800,000 600,000 PER UNIT data: Selling price Direct materials Direct labor $0.80 $0.20 $0.04 $0.75 $0.15 $0.02 $0.60 $0.14 $0.02 Hours per 1000-unit batch: - 1 1 Direct labor hours Oven hours Packaging hours 2 1 0.5 1 0.5 1 0.5 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Cleaning Oven Packaging $ 12,000 $210,000 $150,000 $360.000 2,400 hours Direct labor 1,900 oven hours 950 packaging hours Determine the activity-cost-driver rate for cleaning costs ($ per direct labor hour)(round to the nearest penny). Question 13 0.5 pts Determine the activity-cost-driver rate for oven costs ($ per oven hour)(round to the nearest penny). Question 14 0.5 pts Determine the activity-cost-driver rate for packaging costs ($ per packaging hour) (round to the nearest penny)