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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?????

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