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Overhead Costs GBW currently computes overhead costs by using traditional cost allocation methods, but is considering using Activity based costing, GBW believes that there are three drivers of indirect costs, the number of varietals produced, the number of pallets ordered, and the number of manufacturing hours per year. The factory has capacity of 95,000 bottles, and runs on a 24/7 schedule. There are 8,760 manufacturing hours per year (24 hours x 365 days). Table 4. ABC Activity Cost Pools Expected Activity Leve Activity Pools Winemaking Customer Orders Production Support Cost Driver Hof varietals # of pallet: Mfg hours 8.760 Sales Commissions: Distributors are paid a commission of $60 per pallet ordered. Each pallet contains 10 cases, or 120 bottles of wine. In 2018, distributors ordered 583 pallets, for total commissions paid of $35,000. Recycled scrap grapes: If any juice remains after filling the oak barrels and the stainless steel tank, it cannot be saved for the next year. Therefore, it is composted back into the vineyard. Because of this, ending raw materials is always valued at zero, and the cost of the unused grape Juice, which the company refers to as "Recycled Scrap Grapes, is treated as a variable overhead cost. This cost is the difference between the raw materials purchased and the raw materials.consumed in production dependent on the number of varietals produced. Utilities - fermenting process: Utility costs are incurred primarily to maintain a cons temperature in the fermenting process. These costs were $5.470. This cost depends on the number of manufacturing hours per year. Since the company runs at near capacity, this cost is not expected to fluctuate unless additional capacity were added. In this case it is expected that the cost would ionately to the number of additional bottles produced. The ratio is approximately So.11 per additional bottle. Waste treatment: After crushing the pulp, skin and see that are eft over must be disposed of. approximately $0.11 wwwwwwwwwwwwwwwwwwwwww Summary of All Sales & Cost Items Instructions: Complete the yellow shaded cells from the information found on the case write-up and worksheet 1 of this project. Produced & % of Total Varietal Price/unit Sold Sales Sales Estate 23.00 12,000 $ 276,000 31% Blend $ 17.00 25,000S 425,000 48% Table I $ 5.50 33,000 S 181,500 21% Totals 70,000$ 882,500 100% Direct Materials Total cost of Direct Cost per bottle Materials $ 4.63 $ 55,560 $ 4.15 $ 103,750 3.25 $ 107,250 Estate Blend Table $ Totals 266,560 Direct Labor wage/hour $ 12.00 Hours of labor/bottle Direct Labor by Varietal Estate Blend Table Total Hours of Total Cost of DL Cost/BottleDL/product DL/product 0.25 3,000$ 36,000 0.20 $ 5,000$ 60,000 0.15 $ 1.80 4,950 $ 59,400 Totals 12950 $ 155,400 Overhead Summary Variable Product Fixed Product Variable SG&A Fixed SG&A $ $ $ $ 8,550 176,000 35,000 284,000 1 Activity-Based Costing Instructions: Complete the yellow-shaded cells. Data for this page can be found in 2 the case study write-up and worksheet 1 of this project. 3 Step 1 Identity Cost Objects quantity Sales Mix 31.0% Cost Object Estate Blend Generic 12,000 25,000 33.000 70,000 21 09 11 Step 2 Identity Costs to Allocate Indirect Cost process Sales commissions Recycled Scrap Grapes S $ 5,470 35 000 BORO 17 Step 3 Cost Driver Activity Cos Pool Cost Group Activites into Pools Activity Pools Pool 1 (Winemaking) Recycled Scrap Grapes of varietals 5,080 5,080 Pool 2 (Customer Orders) Sales commissions of pallets $ 35,000 5 35,000 Pool (Product Support) process mtg hours $470S 5.470 5 43,550 31 Step Determine the the Activity rate for each Pool Activity Pools Winemakin Customer Orders Production Support 33 34 Expected Activity assigned Level to Pool Activitate 3 S 3.080 $ 1.076 57 5835 35.000 5 60.03 8.760 $ 5.470 $ 06244 Cost Driver of varietals of pallets Mfg hours Pool #2 (Customer Orders) Sales commissions of pallets S 35,000 $ 35,000 Pool #3 (Product Support) process mfg hours $ 5,470 S $ 5,470 43,550 cost Step 4 Determine the the Activity rate for each Pool mo Activity Pools Winemaking Customer Orders Production Support Cost Driver # of varietals # of pallets Mfg hours Expected Activity Level 3 583 8,760 Costs assigned to Pool $ 3,080 $ 35,000 $ 5,470 $ 43,550 Activity rate $ 1,026.67 $ 60.03 $ 0.6244 38 40 Step 5 Activity Consumed totals Allocate Indirect Cost to Product Estate Activity Cost Pool Consumed Pool # 1 (Winemaking) Pool #2 (Customer Orders) Pool #3 (Production 1513 *** 8760 hours x sales mix Activity rate $ 1,027 $ 60 $ 0.62 Activity cost allocated S - $ - $ 938 Blend Activity rate $ 1,027 $ 60 $ 0.62 Activity cost allocated $ 1,027 $ - $ - Table Activity Activity Consumed rate $ 1,027 S 275 $ 60 IS 0.62 Activity cost allocated S 16,500 S - $ S 1,027 16,500 938 $ 938 $ 1,027 $ 16,500 $ 18,465 9898898 . .. Part 2 WS 4 - Trad. OH WS5 - ABC Sheet1 WS 6 - VCWS 7 - CM Part 3 WS 8 - DronW S 9. Contrainte . INSTRUCTIONS categorie the list of cont below by completing the yellow h e boxes. Be careful to only in the Yellow shaded boxes! Unit Data can be found in the Case Study write-up. Units Sold and Units packaged in Bottles are found on Table 1: Sales data. Grizzle Rear Winery cold all units produced Category Direct Labor Botting lahor Boxins and Crafting Labor Crush Labor Harvest Labor Fixed Product Overhead Production Salary Depreciations 75.000 54000 21.000 4,200 5.2000 125,000 $ 30,000 2.000 waste treatment 155,400 176,000 Account List Administrative Office Rent Administrative salaries Bottie, labels, corks Botting labor Boxing & Crating labor Boxes Crush labor Depreciation Fermenting ingredients Grapes Harvest labor Lab fees Production Supervisor salary Recycled Scrap grapes Sales commissions Sales manager salary Utilities - fermenting process Waste treatment Wine master fee Check figure total $ Variable SG&A Account Balance Dec 31, 2018 24,000 175.000 35,240 21,000 4,200 12,550 5,200 54,000 15,520 203,250 125,000 15.000 75,000 3,080 35,000 85,000 5,470 2,000 30,000 925,510 Sales Comissions $ 35.000 Direct Materials Bottles, Labels, corks $ 25.240 12,550 Fermenting ingredients 203,250 Uusi 35,000 $ 266,560 Fixed SG&A Administrative Office Rent Administrative Salaries Sales Manager Salary $ $ IS 24,000 175,000 85.000 Variable Product Overhead Utilities Recyced Scrap grapes $ $ 5,470 3,080 $ 284,000 Check figure total 925,510 $ 8,550 Summary of All Sales & Cost Items Instructions Complete the yellow shaded cells from the information found on the case write-up and worksheet 1 of this project. Produced & % of Total Varietal Price/unit Sold Sales Sales Estate S 23.00 12.000 $ 276,000 31% Blend S 17.00 25,000 $ 425,000 Table $ 5.50 33,000 $ 181,500 21% Totals 70,000 $ 882,500 100% AR Direct Materials Total cost of Direct Cost per bottle Materials $ 4.63 $ 55,560 $ 4.15 $ 103,750 $ 3.25 $ 107,250 Estate Blend Table Totals 266,560 Direct Labor wage/hour 12.00 Hours of labor/bottle Direct Labor by Varietal Estate Blend Table Total Hours of Total Cost of DL Cost/Bottle DL/product DL/product 0.25 $ 3.00 3,000 $ 36,000 0.20 $ 2.40 5,000 $ 60,000 0.15 $ 1.80 4,950 $ 59,400 Totals 12950 $ 155,400 $ Overhead Summary Variable Product Fixed Product s Variable SG&A Fixed SG&A 8,550 176,000 35,000 284,000 $ $ Instructions: Complete the income Statements below under Absorption and Variable Costing. The data needed to complete the yellow-shaded boxes is found on the Account List, and in the written case study. Absorption Costing Income Statement Total Sales $ 882,500 % of Costs of Good Sold Sales Total Direct Labor $ 155,400 17.6% Total Direct Materials $ 266,560 30.2% Production OH variable oh S 8,550 fixed oh S 176,000 Total Production Overhead $ 184,550 20.996 Totl Cost of Goods Sold $ 606,510 68.79 Gross Profit $ 275,990 31.3% Selling & Administrative expenses variable sg&a $ 35,000 fixed sg&a $ 284,000 Total SG&A Costs $ 319,000 36.1% Income before taxes $ (43,010) | -4.99 Provision for Taxes @ 2195 0.0% Net Income $ (43,010) 4.995 Variable Costing Contribution Margin Income Statement Total Sales $ 882,500 % of Varaible Costs Sales Total Direct Labor $ 155,400 17.6% Total Direct Materials S 266,560 30.2% Variable Overhead variable product $ 8,550 variable sg&a $ 35,000 Total Variable Overhead Costs 1$ 43.550 4.94 Total Variable Costs $ 465,510 52.7 Contribution Margin $ 416,990 47.3% Fixed Costs fixed oh $ 176,000 fixed sg&a $ 284,000 Total Fixed Costs $ 460,000 52.1% Income before taxes $ 143.0101 4.9% Provision for Taxes @ 21% 00 Net Income $ 143,010) 4.9% 1$ NOTE - taxes are not paid in years where there is an Net Loss Traditional Allocation by Direct Labor hours Instructions: Complete the yellow-shaded cells. The data needed to complete these cells can be found on Worksheets 2 and 3. Be sure to use the Variable overhead from the Variable Costing (Contribution Margin) Income Statement. Allocation rate= = $ = $ 3.36 Total Variable Overhead Total Direct Labor Hours 43,550 12,950 Variable Overhead total DL hours hour Estate x $ 3.361 Blend SOD0 1 5 336 Table 4,950 $ 12,950 10,080 16,815 16,632 43,527 Activity-Based Costing Instruction Complete the yellow-shaded cells. Data for this page can be foun Case study write up and worksheet 1 of this project. dy Couto Greg Activiteiten Cost Driver Activity Cost Pool Cost Winemaking leefb5300 S3080 Pool Customer Orders la of pallets 15.000 35.000 Pool 3 Product Support Utilities - Serment proce n t hour 540 5 5 ,470 S41.350 Determine theme Activity rate for each Pool Actietty assigned to Activity rate BORDS 1.026.67 $0.03 5,4705 0.6244 Allocate Indirect Cost to Product Activity cost allocated Activity Consumed Consu Activity cost allocated dity rate Activitats Consumed Activity cost Activity rate Allocated $ 1,027 1027 50 0.625 Cast Pool Pool N 1 (Wincmaland Pool 2 (Customer Orders 216.500 16,500 Pool Produ 0.625 *** 8760 hours x sales $ $ 1,027 18,465 16500 $ Variable Cost Computation Instructions: Complete the yellow-shaded cells. The data needed to complete this worksheet can be found on worksheets 3 - Contribution Margin Income Statement, and workseet 4 - Traditional OH Estate 55,560 $ 36,000 $ Blend 103,750 $ 60,000 $ Table 107,250 59,400 Variable Cost Direct Materials Direct Labor Variable overhead (use Traditional method) Total Variable Costs # bottles sold Variable Cost per bottle 180,565 25,000 12,000 33,000 Instructions: Complete the yellow-shaded cells. The data needed to complete this worksheet can be found on worksheets 3 and 6 of this project. Contribution Margin Computation Variable Cost/bottle Total Lbs of grapes per CM per bottle bottle CM per lb of grapes Retail Price/bottle Estates 23.00 Blend $ 17.00 Tables 5.50 9.78 Relevant Costs for Decision-Making Instructions: Complete the yellow-shaded cells using the relevant cost data for dropping or keeping a product. The data needed to complete this project can be found on worksheet 3, and worksheet 6. Be sure to use the Contribution Margin Income Statement on Worksheet 3. Also be sure to identify which product you are analyzing. Estate Blend Table Total Drop Increase (Decrease) Sales Total Variable costs Contribution Margin Total Fixed Costs Net Income (before Taxes) Should one of the wines be Dropped from the Product Mix? Please Explain your reasoning. Instructions: Complete the yellow-shaded cells. Data needed to complete this worksheet can be found in the case write-up. Product mix (bottles produced) will come from your new strategy forecast. ***Note You should use this worksheet to help you determine the effects of changing your product mix on the contrained resource (lbs. of grapes). You should strive to maximire production of the product with the highest Contribution margin per constrained resource. Constrained resource - pounds of grapes purchased Estate Blend Table Lbs of Cabernet grape per bottle Lbs of Generic grape per bottle Total Lbs of grapes per bottle 100 bottles produced lbs of Cabernet grapes needed lbs of Generic grapes needed Estate Blend Table - - - - Excess or (Shortage) Pounds of Cabernet grapes purchased Pounds of Generic grapes purchased Instructions Complete the yellow-shaded cells using the data from your new strategy. You will find this information on worksheet 9- Constraints, worksheet 2 - cost data, and the case write-up. Retail Price/bottle Revenue Projected Sales Budget for Year Ended Dec 31, 2019 Projected unit Sales Product Estate Blend Table Totals Generic Blend Estate Direct Materials Budget Physical Units Budget vbs of grapes needed lbs of Cabernet per bottle lbs of Generic per bottle Total lbs of Cabernet needed Total lbs of Generic needed Total pounds of all grapes Cost Budget Cost of Direct Materials Estate Blend Table Total Cost of All Direct Materials Difference Cost of Ibs purchased cost of Lbs used Indirect Materials (Variable Overhead) Ibs Purchased Costib Recycled Scrap grapes Cabernet Generic Cost of Unused grapes 5,470 (70,000) 5.470 5,470 Utilities - fermenting process Cost at original capacity # additional bottles produced cost per additional bottle Cost of Utilities - fermenting process Total Cost of All Indirect Materials #DIV/0! Variable SG&A Sales Commissions Cost per pallet sold Bottles per pallet # of bottles sold # of pallets sold Cost of Commssions #DIV/0! Totals Generic Direct Labor Budget Blend Estate Direct Labor Hours Bottles Produced Hours needed per bottle Total hours needed Cost Budget Cost of Labor/hr Total Cost of Direct Labor Instructions - complete the Proforma statement below using data from your Progected Budget and the case write-up Grizzley Bear Winery Year Ended Dec 31, 2019 % of Sales Retail Price Bottles sold Sales Cabernet Estate Cabernet Blend Red Table Wine Total VariableCosts Total Direct Labor Total Direct Materials Variable Overhead Variable SG&A Total Variable Costs Contribution Margin Fixed Costs Fixed Product Fixed SG&A Total Fixed Costs Income before taxes Provision for Taxes @ Net Income mus Overhead Costs GBW currently computes overhead costs by using traditional cost allocation methods, but is considering using Activity based costing, GBW believes that there are three drivers of indirect costs, the number of varietals produced, the number of pallets ordered, and the number of manufacturing hours per year. The factory has capacity of 95,000 bottles, and runs on a 24/7 schedule. There are 8,760 manufacturing hours per year (24 hours x 365 days). Table 4. ABC Activity Cost Pools Expected Activity Leve Activity Pools Winemaking Customer Orders Production Support Cost Driver Hof varietals # of pallet: Mfg hours 8.760 Sales Commissions: Distributors are paid a commission of $60 per pallet ordered. Each pallet contains 10 cases, or 120 bottles of wine. In 2018, distributors ordered 583 pallets, for total commissions paid of $35,000. Recycled scrap grapes: If any juice remains after filling the oak barrels and the stainless steel tank, it cannot be saved for the next year. Therefore, it is composted back into the vineyard. Because of this, ending raw materials is always valued at zero, and the cost of the unused grape Juice, which the company refers to as "Recycled Scrap Grapes, is treated as a variable overhead cost. This cost is the difference between the raw materials purchased and the raw materials.consumed in production dependent on the number of varietals produced. Utilities - fermenting process: Utility costs are incurred primarily to maintain a cons temperature in the fermenting process. These costs were $5.470. This cost depends on the number of manufacturing hours per year. Since the company runs at near capacity, this cost is not expected to fluctuate unless additional capacity were added. In this case it is expected that the cost would ionately to the number of additional bottles produced. The ratio is approximately So.11 per additional bottle. Waste treatment: After crushing the pulp, skin and see that are eft over must be disposed of. approximately $0.11 wwwwwwwwwwwwwwwwwwwwww Summary of All Sales & Cost Items Instructions: Complete the yellow shaded cells from the information found on the case write-up and worksheet 1 of this project. Produced & % of Total Varietal Price/unit Sold Sales Sales Estate 23.00 12,000 $ 276,000 31% Blend $ 17.00 25,000S 425,000 48% Table I $ 5.50 33,000 S 181,500 21% Totals 70,000$ 882,500 100% Direct Materials Total cost of Direct Cost per bottle Materials $ 4.63 $ 55,560 $ 4.15 $ 103,750 3.25 $ 107,250 Estate Blend Table $ Totals 266,560 Direct Labor wage/hour $ 12.00 Hours of labor/bottle Direct Labor by Varietal Estate Blend Table Total Hours of Total Cost of DL Cost/BottleDL/product DL/product 0.25 3,000$ 36,000 0.20 $ 5,000$ 60,000 0.15 $ 1.80 4,950 $ 59,400 Totals 12950 $ 155,400 Overhead Summary Variable Product Fixed Product Variable SG&A Fixed SG&A $ $ $ $ 8,550 176,000 35,000 284,000 1 Activity-Based Costing Instructions: Complete the yellow-shaded cells. Data for this page can be found in 2 the case study write-up and worksheet 1 of this project. 3 Step 1 Identity Cost Objects quantity Sales Mix 31.0% Cost Object Estate Blend Generic 12,000 25,000 33.000 70,000 21 09 11 Step 2 Identity Costs to Allocate Indirect Cost process Sales commissions Recycled Scrap Grapes S $ 5,470 35 000 BORO 17 Step 3 Cost Driver Activity Cos Pool Cost Group Activites into Pools Activity Pools Pool 1 (Winemaking) Recycled Scrap Grapes of varietals 5,080 5,080 Pool 2 (Customer Orders) Sales commissions of pallets $ 35,000 5 35,000 Pool (Product Support) process mtg hours $470S 5.470 5 43,550 31 Step Determine the the Activity rate for each Pool Activity Pools Winemakin Customer Orders Production Support 33 34 Expected Activity assigned Level to Pool Activitate 3 S 3.080 $ 1.076 57 5835 35.000 5 60.03 8.760 $ 5.470 $ 06244 Cost Driver of varietals of pallets Mfg hours Pool #2 (Customer Orders) Sales commissions of pallets S 35,000 $ 35,000 Pool #3 (Product Support) process mfg hours $ 5,470 S $ 5,470 43,550 cost Step 4 Determine the the Activity rate for each Pool mo Activity Pools Winemaking Customer Orders Production Support Cost Driver # of varietals # of pallets Mfg hours Expected Activity Level 3 583 8,760 Costs assigned to Pool $ 3,080 $ 35,000 $ 5,470 $ 43,550 Activity rate $ 1,026.67 $ 60.03 $ 0.6244 38 40 Step 5 Activity Consumed totals Allocate Indirect Cost to Product Estate Activity Cost Pool Consumed Pool # 1 (Winemaking) Pool #2 (Customer Orders) Pool #3 (Production 1513 *** 8760 hours x sales mix Activity rate $ 1,027 $ 60 $ 0.62 Activity cost allocated S - $ - $ 938 Blend Activity rate $ 1,027 $ 60 $ 0.62 Activity cost allocated $ 1,027 $ - $ - Table Activity Activity Consumed rate $ 1,027 S 275 $ 60 IS 0.62 Activity cost allocated S 16,500 S - $ S 1,027 16,500 938 $ 938 $ 1,027 $ 16,500 $ 18,465 9898898 . .. Part 2 WS 4 - Trad. OH WS5 - ABC Sheet1 WS 6 - VCWS 7 - CM Part 3 WS 8 - DronW S 9. Contrainte . INSTRUCTIONS categorie the list of cont below by completing the yellow h e boxes. Be careful to only in the Yellow shaded boxes! Unit Data can be found in the Case Study write-up. Units Sold and Units packaged in Bottles are found on Table 1: Sales data. Grizzle Rear Winery cold all units produced Category Direct Labor Botting lahor Boxins and Crafting Labor Crush Labor Harvest Labor Fixed Product Overhead Production Salary Depreciations 75.000 54000 21.000 4,200 5.2000 125,000 $ 30,000 2.000 waste treatment 155,400 176,000 Account List Administrative Office Rent Administrative salaries Bottie, labels, corks Botting labor Boxing & Crating labor Boxes Crush labor Depreciation Fermenting ingredients Grapes Harvest labor Lab fees Production Supervisor salary Recycled Scrap grapes Sales commissions Sales manager salary Utilities - fermenting process Waste treatment Wine master fee Check figure total $ Variable SG&A Account Balance Dec 31, 2018 24,000 175.000 35,240 21,000 4,200 12,550 5,200 54,000 15,520 203,250 125,000 15.000 75,000 3,080 35,000 85,000 5,470 2,000 30,000 925,510 Sales Comissions $ 35.000 Direct Materials Bottles, Labels, corks $ 25.240 12,550 Fermenting ingredients 203,250 Uusi 35,000 $ 266,560 Fixed SG&A Administrative Office Rent Administrative Salaries Sales Manager Salary $ $ IS 24,000 175,000 85.000 Variable Product Overhead Utilities Recyced Scrap grapes $ $ 5,470 3,080 $ 284,000 Check figure total 925,510 $ 8,550 Summary of All Sales & Cost Items Instructions Complete the yellow shaded cells from the information found on the case write-up and worksheet 1 of this project. Produced & % of Total Varietal Price/unit Sold Sales Sales Estate S 23.00 12.000 $ 276,000 31% Blend S 17.00 25,000 $ 425,000 Table $ 5.50 33,000 $ 181,500 21% Totals 70,000 $ 882,500 100% AR Direct Materials Total cost of Direct Cost per bottle Materials $ 4.63 $ 55,560 $ 4.15 $ 103,750 $ 3.25 $ 107,250 Estate Blend Table Totals 266,560 Direct Labor wage/hour 12.00 Hours of labor/bottle Direct Labor by Varietal Estate Blend Table Total Hours of Total Cost of DL Cost/Bottle DL/product DL/product 0.25 $ 3.00 3,000 $ 36,000 0.20 $ 2.40 5,000 $ 60,000 0.15 $ 1.80 4,950 $ 59,400 Totals 12950 $ 155,400 $ Overhead Summary Variable Product Fixed Product s Variable SG&A Fixed SG&A 8,550 176,000 35,000 284,000 $ $ Instructions: Complete the income Statements below under Absorption and Variable Costing. The data needed to complete the yellow-shaded boxes is found on the Account List, and in the written case study. Absorption Costing Income Statement Total Sales $ 882,500 % of Costs of Good Sold Sales Total Direct Labor $ 155,400 17.6% Total Direct Materials $ 266,560 30.2% Production OH variable oh S 8,550 fixed oh S 176,000 Total Production Overhead $ 184,550 20.996 Totl Cost of Goods Sold $ 606,510 68.79 Gross Profit $ 275,990 31.3% Selling & Administrative expenses variable sg&a $ 35,000 fixed sg&a $ 284,000 Total SG&A Costs $ 319,000 36.1% Income before taxes $ (43,010) | -4.99 Provision for Taxes @ 2195 0.0% Net Income $ (43,010) 4.995 Variable Costing Contribution Margin Income Statement Total Sales $ 882,500 % of Varaible Costs Sales Total Direct Labor $ 155,400 17.6% Total Direct Materials S 266,560 30.2% Variable Overhead variable product $ 8,550 variable sg&a $ 35,000 Total Variable Overhead Costs 1$ 43.550 4.94 Total Variable Costs $ 465,510 52.7 Contribution Margin $ 416,990 47.3% Fixed Costs fixed oh $ 176,000 fixed sg&a $ 284,000 Total Fixed Costs $ 460,000 52.1% Income before taxes $ 143.0101 4.9% Provision for Taxes @ 21% 00 Net Income $ 143,010) 4.9% 1$ NOTE - taxes are not paid in years where there is an Net Loss Traditional Allocation by Direct Labor hours Instructions: Complete the yellow-shaded cells. The data needed to complete these cells can be found on Worksheets 2 and 3. Be sure to use the Variable overhead from the Variable Costing (Contribution Margin) Income Statement. Allocation rate= = $ = $ 3.36 Total Variable Overhead Total Direct Labor Hours 43,550 12,950 Variable Overhead total DL hours hour Estate x $ 3.361 Blend SOD0 1 5 336 Table 4,950 $ 12,950 10,080 16,815 16,632 43,527 Activity-Based Costing Instruction Complete the yellow-shaded cells. Data for this page can be foun Case study write up and worksheet 1 of this project. dy Couto Greg Activiteiten Cost Driver Activity Cost Pool Cost Winemaking leefb5300 S3080 Pool Customer Orders la of pallets 15.000 35.000 Pool 3 Product Support Utilities - Serment proce n t hour 540 5 5 ,470 S41.350 Determine theme Activity rate for each Pool Actietty assigned to Activity rate BORDS 1.026.67 $0.03 5,4705 0.6244 Allocate Indirect Cost to Product Activity cost allocated Activity Consumed Consu Activity cost allocated dity rate Activitats Consumed Activity cost Activity rate Allocated $ 1,027 1027 50 0.625 Cast Pool Pool N 1 (Wincmaland Pool 2 (Customer Orders 216.500 16,500 Pool Produ 0.625 *** 8760 hours x sales $ $ 1,027 18,465 16500 $ Variable Cost Computation Instructions: Complete the yellow-shaded cells. The data needed to complete this worksheet can be found on worksheets 3 - Contribution Margin Income Statement, and workseet 4 - Traditional OH Estate 55,560 $ 36,000 $ Blend 103,750 $ 60,000 $ Table 107,250 59,400 Variable Cost Direct Materials Direct Labor Variable overhead (use Traditional method) Total Variable Costs # bottles sold Variable Cost per bottle 180,565 25,000 12,000 33,000 Instructions: Complete the yellow-shaded cells. The data needed to complete this worksheet can be found on worksheets 3 and 6 of this project. Contribution Margin Computation Variable Cost/bottle Total Lbs of grapes per CM per bottle bottle CM per lb of grapes Retail Price/bottle Estates 23.00 Blend $ 17.00 Tables 5.50 9.78 Relevant Costs for Decision-Making Instructions: Complete the yellow-shaded cells using the relevant cost data for dropping or keeping a product. The data needed to complete this project can be found on worksheet 3, and worksheet 6. Be sure to use the Contribution Margin Income Statement on Worksheet 3. Also be sure to identify which product you are analyzing. Estate Blend Table Total Drop Increase (Decrease) Sales Total Variable costs Contribution Margin Total Fixed Costs Net Income (before Taxes) Should one of the wines be Dropped from the Product Mix? Please Explain your reasoning. Instructions: Complete the yellow-shaded cells. Data needed to complete this worksheet can be found in the case write-up. Product mix (bottles produced) will come from your new strategy forecast. ***Note You should use this worksheet to help you determine the effects of changing your product mix on the contrained resource (lbs. of grapes). You should strive to maximire production of the product with the highest Contribution margin per constrained resource. Constrained resource - pounds of grapes purchased Estate Blend Table Lbs of Cabernet grape per bottle Lbs of Generic grape per bottle Total Lbs of grapes per bottle 100 bottles produced lbs of Cabernet grapes needed lbs of Generic grapes needed Estate Blend Table - - - - Excess or (Shortage) Pounds of Cabernet grapes purchased Pounds of Generic grapes purchased Instructions Complete the yellow-shaded cells using the data from your new strategy. You will find this information on worksheet 9- Constraints, worksheet 2 - cost data, and the case write-up. Retail Price/bottle Revenue Projected Sales Budget for Year Ended Dec 31, 2019 Projected unit Sales Product Estate Blend Table Totals Generic Blend Estate Direct Materials Budget Physical Units Budget vbs of grapes needed lbs of Cabernet per bottle lbs of Generic per bottle Total lbs of Cabernet needed Total lbs of Generic needed Total pounds of all grapes Cost Budget Cost of Direct Materials Estate Blend Table Total Cost of All Direct Materials Difference Cost of Ibs purchased cost of Lbs used Indirect Materials (Variable Overhead) Ibs Purchased Costib Recycled Scrap grapes Cabernet Generic Cost of Unused grapes 5,470 (70,000) 5.470 5,470 Utilities - fermenting process Cost at original capacity # additional bottles produced cost per additional bottle Cost of Utilities - fermenting process Total Cost of All Indirect Materials #DIV/0! Variable SG&A Sales Commissions Cost per pallet sold Bottles per pallet # of bottles sold # of pallets sold Cost of Commssions #DIV/0! Totals Generic Direct Labor Budget Blend Estate Direct Labor Hours Bottles Produced Hours needed per bottle Total hours needed Cost Budget Cost of Labor/hr Total Cost of Direct Labor Instructions - complete the Proforma statement below using data from your Progected Budget and the case write-up Grizzley Bear Winery Year Ended Dec 31, 2019 % of Sales Retail Price Bottles sold Sales Cabernet Estate Cabernet Blend Red Table Wine Total VariableCosts Total Direct Labor Total Direct Materials Variable Overhead Variable SG&A Total Variable Costs Contribution Margin Fixed Costs Fixed Product Fixed SG&A Total Fixed Costs Income before taxes Provision for Taxes @ Net Income mus