QUESTION:

With the below information, this requirement focuses on the special order of 50 dozen cinnamon buns.

1. Determine the total manufacturing costs for the order of 50 dozen cinnamon buns.
2. Calculate the total manufacturing cost on a per dozen basis.
3. Calculate the total manufacturing costs on a per cinnamon bun basis.

Given:

Materials

Traceable Materials	Non-traceable materials *
$28 Flour	Water
$12 sugar	Yeast
$8 milk	Ground cinnamon
$5 Butter	Brown Sugar
$3 eggs	Oil for baking pans

*Note: The non-traceable materials have a total estimated cost of $27 for this order.

Labour

Following is information for the staff working on the day the order is produced & sold. All staff support the production, sales and delivery of all baked products except the baker whose work time is dedicated to this order.

Baker - $35/hr for 6 hours

Support staff (dishwasher, counter sales) $15/hour for 8 hours

Delivery staff - $15/hour 3 hours

Manager - $260/day

Other Expenses

Rent and insurance for the bakery total $3500/month.

Utilities $1280/month.

Tip: daily calculations are based on the following calculation:

cost * 12/365 round to the whole dollar