Question
Table 1: Selected Financial Data (actual cost and revenue data for May 2018) Cost Category Behavior May 2018 Sales $766,667 Expenses: Raw Materials 1 Variable
Table 1: Selected Financial Data (actual cost and revenue data for May 2018)
Cost Category Behavior May 2018
Sales $766,667
Expenses:
Raw Materials 1 Variable 327,934
Bakery labor 2 Mixed 158,767
Administration Salaries Fixed 41,367
Supplies Variable 3,833
Freight & Shipping-In Variable 4,907
Freight & Shipping-Out Variable 64,707
Utilities Electricity Variable 9,813
Utilities Gas (ovens) Variable 3,067
Water Variable 920
Repairs & Maintenance Fixed 4,293
Telephone & Internet Fixed 2,300
Co-owners salary Fixed 25,300
Depreciation Expense:
Plant Building $9,460
Pastry Machines 6,920
Mixers 7,832
Filling Equip. 7,471
Ovens 8,941
Warehouse Freezers 9.210
Total Depr. Fixed 49,834
Total Expenses 697,042
Operating Profit 69,625
Income Tax 22,280
Net operating income $47,345
Unit volume (30,980 whole, 33,520 variety) 64,500 units
Average Operating Assets $5,500,000
Minimum Rate of Return 8.00%
1 Raw materials:
Crust ingredients ($.11) $7,120
Filling ingredients($4.65) 300,165
Packaging:
Tins ($.08) 5,065
Labels ($.076) 4,916
Boxes ($.11) 3,617
Plastic containers ($.22) 7,051
$327,934
2 Labor:
Production Supervisors' Salaries $34,929
Production line wages
($10.50/hr) 51,613
Packaging labor ($15.50/hr):
whole pies 7,016
variety pack 31,359
Sanitation wages ( $15.50/hr) 18,940
Shipping & receiving wages
($15.50/hr) 14,910
$158,767
Your teams assignment
Linda and Taylor are asking several firms to provide a proposal recommending what type of costing approach will help them determine more accurate cost information for Humble Pies pricing and product decisions. Your firm has been invited to provide a proposal. In no more than 1,000 words, write an executive summary addressing the issue (charts and tables with numerical values and calculations will not be included in the word count). Consider the following questions:
Complete an example job cost sheet using the methods you describe. If you need to make assumptions in order to complete the sheet indicate on the sheet how the figures were estimated.
Please show me how to complete the Job Cost Sheet?????
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started