Styles This semester's project will be several different assignments due throughout the semester. You will complete the portion of the project that corresponds to the chapter in which we are working Here are the project facts. Tracy graduated with a degree in accounting from Virginia State University several years ago. She works as an auditor during the week and has been selling cupcakes at a small shop on the weekends. The demand for her cupcakes has grown to the point where she has decided to open the cupcake shop full time. She will be hiring two people to run the store during the week. As an auditor who audits financial statements and she has little experience with managerial accounting. She would like you to assist her with her managerial accounting needs. Tracy is looking to rent a storefront on the Boulevard in Colonial Heights that used to be a diner. It had a kitchen that was converted into a bakery with large ovens, mixing bins, and prep/decorating area. The owner made all the conversions for the bakery. She is currently selling to individuals and to event centers for special occasions and parties. To get the expanded business off the ground she hired a supervisor and two wage employees to run the new store. The rest of her payroll includes one office staff who prepare invoices and does other office duties. She also hired a sales person who is paid based on the number of cupcakes sold. of the storefront she has rented, 80% is used as the bakery and 20% is used as office space The first part of the assignment is to determine the cost per cupcake using job order costing. The second assignment is to create a budget for the expanding business. Next, you will do variance analysis to determine the reason for the difference between budgeted and actual Date domina chachenmann man alimman The final Droo ch ti 8 o 3 S5 4 96 5 6 00 1 E Y R. T G H F J K N B M M V C Font Paragraph Styles little experience with managerial accounting. She would like you to assist her with her managerial accounting needs. Tracy is looking to rent a storefront on the Boulevard in Colonial Heights that used to be a diner. It had a kitchen that was converted into a bakery with large ovens, mixing bins, and prep/decorating area. The owner made all the conversions for the bakery. She is currently selling to individuals and to event centers for special occasions and parties. To get the expanded business off the ground she hired a supervisor and two wage employees to run the new store. The rest of her payroll includes one office staff who prepare invoices and does other office duties. She also hired a sales person who is paid based on the number of cupcakes sold. of the storefront she has rented, 80% is used as the bakery and 20% is used as office space. The first part of the assignment is to determine the cost per cupcake using job order costing. The second assignment is to create a budget for the expanding business. Next, you will do variance analysis to determine the reason for the difference between budgeted and actual. Part four, is to determine if she should consider making some capital improvements. The final portion is to write a paper to make recommendations on ways Tracy can improve her profit. Along with the paper, there will be a group presentation on all parts of the project. The project is be completed individually. You will only form teams for the presentation. Your presentation score will also be an individual grade based on how well you personally performed In the presentation. Each part of the project will be given to you as we complete the corresponding chapter. I will post the assignments in Blackboard when appropriate Focus ch O hp $ 96 5 & 7 3 6 00 (0 E R T Y U 1 0 P D F G H J IK L 1 Normal 1 No Spac. Fico are-A- Styles Paragraph Assignment 1 Job Order Costing Tracy is unsure how much to charge for the cupcakes. When she was making the cupcakes by herself and only rented a small storefront that was only open on weekends, she calculated the cost per cupcake based on the cost of ingredients and she added 50% to that cost to cover all of her other expenses. She is not sure if that was accurate. Tracy has asked you to help her determine the cost per cupcake. She has given you her estimated total for each expense. She does not know how to allocate her overhead costs. She also knows that some of her costs are product costs and some are period costs. She has given you a list of costs and needs you to, first, determine which costs are period costs and which costs are product costs and, secondly, determine which are direct materials, direct labor, and factory overhead. She believes that the best cost driver for the factory overhead costs to be the number of cupcakes baked and sold. Your assignment is to calculate the cost per cupcake and present your findings in a 1% page paper. Explain to Tracy the costs are product costs and the costs are period costs. She also needs to know which costs are direct materials and direct labor and how you allocated the factory overhead. Your paper can contain charts and other graphics you feel are helpful. Breanna Ba at Job Order Costing 1 (3) - Word e Search References Mailings Review View Help A A A A E 21 A-DA-E 9 - 1 Normal T No Spac. Heading 1 Heading 2 Title Styles Paragraph Here is her expected annual data: The first year she expects to sell 65,000 cupcakes. She will pay her supervisor a salary and her bakers an hourly wage. The person she hires to work in the office will receive salary and her salesman will earn a commission based on the number of cupcakes sold for special events. Expense Cost Estimated Additional information behavior annual amount Raw materials Variable $29,000 All are purchased as needed to avoid spoilage and to have the freshest ingredients Baker, wages Variable $48,000 They do all of the baking Supervisor's salary Fixed $30,000 Supervisor does not do any baking Office personnel Fixed SIB,000 Trac/s salary Fixed $35,000 She considers herself CEO Salesman's salary Variable $18,500 He is paid based on number of cupcakes sold to special events Supplies Variable $1,500 All used in the bakery Utilities (electric) Variable $2,500 85% is for the bakery and 15% is for the administrative office Utilities (as) for ovens Variable $1,500 All for bakery Water Variable $600 All for bakery hepairs and maintenance Fixed $2,300 All for bakery Kent expense Fixed $12,000 80% is for the bakery and 20% is for the administrative office Telephone and internet Fored $1,200 All for administrative office D Focus O Styles This semester's project will be several different assignments due throughout the semester. You will complete the portion of the project that corresponds to the chapter in which we are working Here are the project facts. Tracy graduated with a degree in accounting from Virginia State University several years ago. She works as an auditor during the week and has been selling cupcakes at a small shop on the weekends. The demand for her cupcakes has grown to the point where she has decided to open the cupcake shop full time. She will be hiring two people to run the store during the week. As an auditor who audits financial statements and she has little experience with managerial accounting. She would like you to assist her with her managerial accounting needs. Tracy is looking to rent a storefront on the Boulevard in Colonial Heights that used to be a diner. It had a kitchen that was converted into a bakery with large ovens, mixing bins, and prep/decorating area. The owner made all the conversions for the bakery. She is currently selling to individuals and to event centers for special occasions and parties. To get the expanded business off the ground she hired a supervisor and two wage employees to run the new store. The rest of her payroll includes one office staff who prepare invoices and does other office duties. She also hired a sales person who is paid based on the number of cupcakes sold. of the storefront she has rented, 80% is used as the bakery and 20% is used as office space The first part of the assignment is to determine the cost per cupcake using job order costing. The second assignment is to create a budget for the expanding business. Next, you will do variance analysis to determine the reason for the difference between budgeted and actual Date domina chachenmann man alimman The final Droo ch ti 8 o 3 S5 4 96 5 6 00 1 E Y R. T G H F J K N B M M V C Font Paragraph Styles little experience with managerial accounting. She would like you to assist her with her managerial accounting needs. Tracy is looking to rent a storefront on the Boulevard in Colonial Heights that used to be a diner. It had a kitchen that was converted into a bakery with large ovens, mixing bins, and prep/decorating area. The owner made all the conversions for the bakery. She is currently selling to individuals and to event centers for special occasions and parties. To get the expanded business off the ground she hired a supervisor and two wage employees to run the new store. The rest of her payroll includes one office staff who prepare invoices and does other office duties. She also hired a sales person who is paid based on the number of cupcakes sold. of the storefront she has rented, 80% is used as the bakery and 20% is used as office space. The first part of the assignment is to determine the cost per cupcake using job order costing. The second assignment is to create a budget for the expanding business. Next, you will do variance analysis to determine the reason for the difference between budgeted and actual. Part four, is to determine if she should consider making some capital improvements. The final portion is to write a paper to make recommendations on ways Tracy can improve her profit. Along with the paper, there will be a group presentation on all parts of the project. The project is be completed individually. You will only form teams for the presentation. Your presentation score will also be an individual grade based on how well you personally performed In the presentation. Each part of the project will be given to you as we complete the corresponding chapter. I will post the assignments in Blackboard when appropriate Focus ch O hp $ 96 5 & 7 3 6 00 (0 E R T Y U 1 0 P D F G H J IK L 1 Normal 1 No Spac. Fico are-A- Styles Paragraph Assignment 1 Job Order Costing Tracy is unsure how much to charge for the cupcakes. When she was making the cupcakes by herself and only rented a small storefront that was only open on weekends, she calculated the cost per cupcake based on the cost of ingredients and she added 50% to that cost to cover all of her other expenses. She is not sure if that was accurate. Tracy has asked you to help her determine the cost per cupcake. She has given you her estimated total for each expense. She does not know how to allocate her overhead costs. She also knows that some of her costs are product costs and some are period costs. She has given you a list of costs and needs you to, first, determine which costs are period costs and which costs are product costs and, secondly, determine which are direct materials, direct labor, and factory overhead. She believes that the best cost driver for the factory overhead costs to be the number of cupcakes baked and sold. Your assignment is to calculate the cost per cupcake and present your findings in a 1% page paper. Explain to Tracy the costs are product costs and the costs are period costs. She also needs to know which costs are direct materials and direct labor and how you allocated the factory overhead. Your paper can contain charts and other graphics you feel are helpful. Breanna Ba at Job Order Costing 1 (3) - Word e Search References Mailings Review View Help A A A A E 21 A-DA-E 9 - 1 Normal T No Spac. Heading 1 Heading 2 Title Styles Paragraph Here is her expected annual data: The first year she expects to sell 65,000 cupcakes. She will pay her supervisor a salary and her bakers an hourly wage. The person she hires to work in the office will receive salary and her salesman will earn a commission based on the number of cupcakes sold for special events. Expense Cost Estimated Additional information behavior annual amount Raw materials Variable $29,000 All are purchased as needed to avoid spoilage and to have the freshest ingredients Baker, wages Variable $48,000 They do all of the baking Supervisor's salary Fixed $30,000 Supervisor does not do any baking Office personnel Fixed SIB,000 Trac/s salary Fixed $35,000 She considers herself CEO Salesman's salary Variable $18,500 He is paid based on number of cupcakes sold to special events Supplies Variable $1,500 All used in the bakery Utilities (electric) Variable $2,500 85% is for the bakery and 15% is for the administrative office Utilities (as) for ovens Variable $1,500 All for bakery Water Variable $600 All for bakery hepairs and maintenance Fixed $2,300 All for bakery Kent expense Fixed $12,000 80% is for the bakery and 20% is for the administrative office Telephone and internet Fored $1,200 All for administrative office D Focus O