Case Stadey

A CASE STUDY Activity- cup of tead representing and Pricing Submitted by: doctor Tano howling(a) 24, 2011 Requirements: 1. Using like a shot labor-hours as the base for assigning manufacturing disk disk bash equal to proceedss, do the following: a. fit the predetermined operating cost calculate that volition be used during the year. Data given: * Estimated manufacturing smasher approach$ 2,200,000 * show labor hours50,000 hours Answer: shape overhead rate = $ 2,200,000 = $ 44 per DLHs 50,000 hrs b. Determine the unit product cost of one beat of the Kenya disgraceful hot chocolate and one vex of the Viet learn coffee. | Kenya low coffee | Viet Select Coffee | Direct Materials | $ 4.50 | $ 2.90 | Direct Labor | $ 0.24| $ 0.24 | Manufacturing Overhead0.02 ($ 44) = $ 0.88 (1.25) | $ 1.10 | $ 1.10| building block Product represent | $ 5.84| $ 4.24 | 2. Using activity-based costing as the basis for assigning manuf acturing overhead cost to products, do the following: a. Determine the total ply forth of manufacturing overhead cost assigned to the Kenya racy coffee and to the Viet Select coffee for the year. b. Using the data developed in (2a) above, see the amount of manufacturing overhead cost per pound of the Kenya Dark coffee and the Viet Select coffee.

Round all computations to the nearest satisfying cent. c. Determine the unit product cost of one pound of the Kenya Dark coffee and one pound of the Viet Select coffee. Mark-up = 25% | Kenya Dark Coffee| Viet Select Coffee| Selling outlay | $6.35 | $6.30 | Unit Product Cost | $5.08 | $5.04 | Pr! ofit Margin | $1.27 | $1.26 | (In Percent) | 25% | 25% | 3. Write a brief memo to the prexy of JSI explaining what you defend found in (1) and (2) above and discussing the implications to the company of utilise direct labor as the base for assigning manufacturing overhead cost to products. To: Java parentage Inc. President From: The Auditors Java Source Incorporateds data given...If you want to get a full essay, beau monde it on our website: OrderCustomPaper.com

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