Question 8 1 pts (Not a repeat question.) La Patisserie is a small bakery that provides cakes and breads to small grocery shops in the town of Soquel, California. It is housed in a single building. The ovens and mixing areas occupy 65% of the space, 5% is used for storing and mailing marketing literature and the rest is occupied by the office staff. The bakery operates 360 days per year, 8 hours per day. It employs two cake bakers who are paid $22 per hour and two bread bakers who are paid $12 per hour and has a small staff of helpers who account for 30% of the other employee salaries. Approximately 60% of its materials, flour, eggs, sugar and oil, are used for cakes; the remaining 40% are used for bread. Indirect manufacturing costs are allocated to products on the basis of direct labor hours. During the current year, it started and completed 108,000 units of cakes and 144,000 units of bread at a selling price of $6 per unit and $1.50 per unit respectively Annual costs incurred by La Patisserie: Flour, Eggs, Sugar and Oil $140,300 Office staff salaries $89,500 Rent utilities and insurance $124,700 Baker's wages $214,000 Salaries of other employees $106,000 Sales commissions (5%) $50,000 Delivery cost to customers $4,500 Other baking materials & supplies $23,900 Office equipment & supplies $15,250 Total cost $768,150 Question 8 1 pts (Not a repeat question.) La Patisserie is a small bakery that provides cakes and breads to small grocery shops in the town of Soquel, California. It is housed in a single building. The ovens and mixing areas occupy 65% of the space, 5% is used for storing and mailing marketing literature and the rest is occupied by the office staff. The bakery operates 360 days per year, 8 hours per day. It employs two cake bakers who are paid $22 per hour and two bread bakers who are paid $12 per hour and has a small staff of helpers who account for 30% of the other employee salaries. Approximately 60% of its materials, flour, eggs, sugar and oil, are used for cakes; the remaining 40% are used for bread. Indirect manufacturing costs are allocated to products on the basis of direct labor hours. During the current year, it started and completed 108,000 units of cakes and 144,000 units of bread at a selling price of $6 per unit and $1.50 per unit respectively Annual costs incurred by La Patisserie: Flour, Eggs, Sugar and Oil $140,300 Office staff salaries $89,500 Rent utilities and insurance $124,700 Baker's wages $214,000 Salaries of other employees $106,000 Sales commissions (5%) $50,000 Delivery cost to customers $4,500 Other baking materials & supplies $23,900 Office equipment & supplies $15,250 Total cost $768,150