SURNAME (S): Dosalieva MANAGERIAL ACCOUNTING FINAL EXAM Coffee Bean, Incorporated (CBI), is a processor and distributor of a variety of Data regarding the expected production of Mona Loa and Malaysian coffee blends of coffee. The company buys coffee beans from around the world and are presented below. There will be no raw materials inventory for either of roasts, blends, and packages them for resale. CBI offers a large variety of these coffees at the beginning of the year. different coffees that it sells to gourmet shops in one-pound bags. The major cost of the coffee is raw materials. However, the company's predominantly Mona Loa Malaysian automated roasting, blending, and packing processes require a substantial Expected sales 60,000 pounds 2,000 pounds Batch size 12,000 pounds 500 pounds amount of manufacturing overhead. The company uses relatively little direct labor. Some of CBI's coffees are very popular and sell in large volumes, while Mona Loa Malaysian a few of the newer blends sell in very low volumes. Setups per batch 3 per batch For the coming year, CBI's budget includes estimated manufacturing overhead Purchase order size 12,000 pounds 500 pounds cost of $2,604,000. CBI assigns manufacturing overhead to products on the Roasting time 1 roasting hours 1 roasting hours basis of direct labor-hours. The expected direct labor cost totals $504,000, per 100 pounds Blending tune which represents 42,000 hours of direct labor time. 0.5 blending hours 0.5 blending hours per 100 pounds The expected costs for direct materials and direct labor for one-pound bags of Packaging time 0.1 packaging hours 0.1 packaging hours two of the company's coffee products appear below. per 100 pounds Mona Loa Malaysian Direct inaterials $ 3.40 $ 2.40 Direct labor (0.025 hours per bag) $ 0.30 $ 0.30 Using activity-based costing as the basis for assigning manufacturing CBI's controller believes that the company's traditional costing system may be overhead cost to products, provide answers to below questions providing misleading cost information. To determine whether or not this is 1. Determine the total amount of manufacturing overhead cost assigned to t correct, the controller has prepared an analysis of the year's expected Mona Loa coffee and to the Malaysian coffee for the year. 2.. Using the data developed in question 1, compute the amount of manufacturing overhead costs, as shown in the following table: manufacturing overhead cost per pound of the Mona Loa coffee and the Expected Activity for Expected Cost for Malaysian coffee. Activity Cost Pool Activity Measure the Year the Year 3. Determine the unit product cost of one pound of the Mona Loa coffee Purchasing Purchase orders 1,630 orders $ 358,600 one pound of the Malaysian coffee. Material handling Number of setups 1,720 setups 550,400 Quality control Number of batches 520 batches 83,200 Roasting Roasting hours 95,300 roasting hours 953,000 Blending Blending hours 32,700 blending hours 392,400 Packaging Packaging hours 26,640 Packaging 266,400 hours d cost $ 2.604.000