The point of the this case study is too show the variances of a manufactured product and to account for the difference. The first part of the case study is to cookie Nestle Tollhouse Cookies from the yellow package (NOT premade dough). You should be able to follow the directions and track (estimate) the costs for a variance assignment. Each student should have a different answer since each batch of cookies will have different variance. I expect a posted picture of you cookies (do not use stock photos) and a spreadsheet analysis of the variances. same like this below: Case Study Two - Nestle Toll House Cookies Kathryn Hammer Cost Accounting, Fall 2017 Estimated Budget Actual Values Budgeted Cookies 60 Actual Cookies 51 Total Per Cookie Per Dozen Total Per Cookie Per Dozen

For this exercise, I will bake the American classic chocolate chip cookie using the Nestle Toll House cookie recipe. The recipe is found on the back of a bag of semi-sweet chocolate chips. I will prepare a standard budget, and record actual values for time and number of completed cookies. The recipe suggests that a total of 60 cookies (5 dozen) can be made, so this is my goal.

Direct Materials 6.00 $ 0.10 $ 1.20 $ Direct Materials 6.00 $ 0.12 $ 1.41 $ Direct Labor ($15*0.5) 7.50 $ 0.13 $ 1.50 $ Direct Labor ($15*0.75) 11.25 $ 0.22 $ 2.65 $ Indirect Materials (Overhead) (cookie sheet, cooling rack, spatula, mixing bowl, mixer, oven mit, gas for oven) 1.00$ 0.02 $ 0.20 $ Indirect Materials (Overhead) (cookie sheet, cooling rack, spatula, mixing bowl, mixer, oven mit, gas for oven) 1.00$ 0.02 $ 0.24 $ Variable OVH (gas for oven, electricity) 1.00$ 0.02 $ 0.20 $ Variable OVH (gas for oven, electricity) 1.00$ 0.02 $ 0.24 $ Fixed OVH (time to bake a batch x (hours per month open/mortgage)) 5.00$ 0.08 $ 1.00 $ Fixed OVH (time to bake a batch x (hours per month open/mortgage)) 5.75$ 0.11 $ 1.35 $ Total 20.50 $ 0.34 $ 4.10 $ Total 25.00 $ 0.49 $ 5.88 $ Variance Analysis Actual Variance Favorable / Unfavorable Flexible Budget Variance Favorable / Unfavorable Static Budget Output (No. of Cookies) 51 0 51 9 U 60 Direct Materials 6.00 $ (0.90) $ U 5.10 $ 0.90 $ F 6.00 $ Direct Labor 11.25 $ (4.88) $ U 6.38 $ 1.13 $ F 7.50 $ Variable OVH 1.00 $ (0.15) $ U 0.85 $ 0.15 $ F 1.00 $ Fixed OVH 5.75 $ (4.90) $ U 0.85 $ 4.15 $ F 5.00 $ l. I had unfavorable variances primarily due to actual direct labor being higher than the budgeted amount and producing fewer than the planned number of cookies. Fewer cookies were made because I ate two spoons of cookie dough (I shouldn't consume the product). Also the size of each cookie was not perfectly uniform because these were hand-made rather than machine-made. The cookies didn't rise as much as I would have liked, which may be due to the quality of the ingredients, oven temperature, butter temperature, egg temperature, or any combination thereof. Quantity and presentation aside, the cookies were delicious!

Please help!