te Merge Center Formatting Tablety fx G radisional and ABC Corting ed it up has been using a rough b-order cost system to help them pnce out the tems on their menu. They mainly prepare smoothie bowls or waffles for their customer Athough the toppings and bases ay vary per bowl or wate, they apply 54 orect materiale coat to each smoothie bowl and a 34 direct materials cost to each wollte prepared. Each menu tem takes approximately 5 minutes to prepare by an ploye, so 12 units can be made an hour by a single employee Regular employees are paid $13 an hour. They are open for 7 hours a day, and have 3 employees on persht, in addition to a manager they are open 365 days a year because they believe healthy food should be available to everyone all the time. They charge $12 per smoothie bowl and Sper watfe. They prepare 90,000 orders a year lend It Up has heard of assigning overhead based on direct labor costs, but they aren't sure how to calcuate it Fill in the missing information for them Direct Materials Direct Labor (Employee Sales Rent & Uuties Manager Sales Custodunes Saling and Active Expenses Total Costa Direct Cost Per Unt (Same for both Total Costs Smoothie Bows and Waffles) 360.000 4.00 99.645 1.08 50,000 5.08 55,000 13,000 12,000 589,645 130,000 Based on the information above what is Blend It Ups total overhead costs for the year? They think direct inbor costs is the best way to allocate their overhead. Calculate their predetermined overhead rate What is the overhead and per unit based on the predetermined overhead rato? Manufacturing Costs Per Unit Smoothie Bowie Waffles Direct Material 4.00 4.00 Direct Labor 1 08 1.08 Traditional head signed Per Unt Total Manufacturing Conta Per Unit 5.08 5.08 Afar the interview you noted that they can break down their departments to the following Estimated Estimated Use of Com Drivers Per Activity Cost Pool Overhead Activity Cost Driven 1) Prepwork department 45,000 1,250,000 Number of Fruits Vegetables, Baking Ingredients 2) Banding and Packing department 5 65,000 90,000 Number of Ordera Prepared 9 Social Media and Advertising 4.000 365 Number of Hours spent on instagram Tok 4) Product Development 0.00 28 Number of Seasonal Products Developed 51 tal or Management 5 10.000 1.500 Square Footage Total Otead 5 130,000 end up severely of tems on their menu, but they have decided to break up their munu into two main products Smoothie Bowls and Waffles Calculate the activity based overhead rates per activity pool, as well as the aged cost per product Activy Ost Pool Estimated Overhead Estimated Use of Cost Divers Per Activity-Based Addy Overhead Rates Blend It Up selia variety of toma on their menu, but they have decided to break up their menu into two main products: Smoothie Bowls and Waffies Calculate the activity based overhead stes per ty pool, as well as the assigned cost per product Estimated Overhead Estimated Use of Cost Driver Per Activity Based Activity Overhead Rates Activy Cost Pool 1) Prepwork department 2) Blending and Packing department 3) Social Media and Advertising 4) Product Development 5) Retail Store Management Smoothie Bowls Activity Based Overhead Rates Cost Assigned Activity Cost Poole 1) Propwork department 2) Blanding and Packing department 9) Social Media and Advertising 4) Product Development 5) Retail Store Management Estimated Use of Cost Drivers Per Product 900.000 76,500 313 10 1,000 Watts Activity Based Overhead Rates Cont Assigned Activity Cout Pool 1) Propwork department 2ing and Packing department b) focial Media and Advertising 4) Product Development 5) Retal Store Management Estimated Use of Cest Drivers Per Product 350.000 13,800 52 12 500 Jing ADC, w mech overhead on they wo to Smollowch year jog ADC, w much overhead can they into Walfes each year? Update the cost per unit using the ABC costing infomation Manufacturing Costs Direct Materals Dect Labor Adity and Cou Overhead Assigned Smoothie bowls Wales 400 1on 4.00 1.00 3.00 5.08 Compared to a Traditional Overhead Cost assignment calculations from above, what do these new ABC Overhead Containments per un to you? Do you have any advice for Bed Company Cost Units in Chapter 4 and illustration 4 12)