Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

question: Direct, indirect, fixed, and variable costs. Best Breads manufactures two types of bread, which are sold as wholesale products to various specialty retail bakeries,

question:

image text in transcribed

image text in transcribed

Direct, indirect, fixed, and variable costs. Best Breads manufactures two types of bread, which are sold as wholesale products to various specialty retail bakeries, Each loaf of bread requires a three-steps process. The first step is mixing. The mixing department combines all of the necessary ingredients to create the dough and processes it through high speed mixture. The dough is then left to rise before baking. The second step is baking, which is an entirely automated process. The baking department molds the dough into its final shape and bakes each loaf of bread in a high temperature oven. The final step is finishing, which is an entirely manual process. The finishing department coast each loaf of bread with a special glaze, allows the bread to cool, and then carefully packages each loaf in a specialty carton for sale in retail bakeries. Costs involved in the process are listed next. For each cost, indicate whether it is a direct variable direct fixed, indirect variable, or indirect fixed cost, assuming "units of production of each kind of bread" is the cost object. If the cost object were are "mixing department" rather than units of production of each kind of bread, which preceding costs would now be direct instead of indirect costs? Direct, indirect, fixed, and variable costs. Best Breads manufactures two types of bread, which are sold as wholesale products to various specialty retail bakeries, Each loaf of bread requires a three-steps process. The first step is mixing. The mixing department combines all of the necessary ingredients to create the dough and processes it through high speed mixture. The dough is then left to rise before baking. The second step is baking, which is an entirely automated process. The baking department molds the dough into its final shape and bakes each loaf of bread in a high temperature oven. The final step is finishing, which is an entirely manual process. The finishing department coast each loaf of bread with a special glaze, allows the bread to cool, and then carefully packages each loaf in a specialty carton for sale in retail bakeries. Costs involved in the process are listed next. For each cost, indicate whether it is a direct variable direct fixed, indirect variable, or indirect fixed cost, assuming "units of production of each kind of bread" is the cost object. If the cost object were are "mixing department" rather than units of production of each kind of bread, which preceding costs would now be direct instead of indirect costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions