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00 pies, and annual orders for East Street total 9,900 pies. Terry's mak ure that the customers only sell freshly made pies as well. Variable mar cturing costs are $106,920.

00 pies, and annual orders for East Street total 9,900 pies. Terry's mak ure that the customers only sell freshly made pies as well. Variable mar cturing costs are $106,920.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 10-74 (Algo) Assigning Capacity Costs (LO 10-6) Located in a small town in upstate New York, Terry's Bakery operates a facility that makes pies for retail sale. The facility has the capacity to make 39,600 ples annually. The plant has only two customers, Panama Food Mart and East Street Coffee. Annual orders for Panama total 19,800 pies, and annual orders for East Street total 9,900 pies. Terry's makes the pies fresh every day and carries no inventory. It also ensure that the customers only sell freshly made pies as well. Variable manufacturing costs are $4.50 per ple, and annual fixed manufacturing costs are $106,920. Required: What cost per ple should the cost system report? Note: Round your answers to 2 decimal places. Cost per pie at capacity Cost per pie at demand
Transcribed Image Text:Problem 10-74 (Algo) Assigning Capacity Costs (LO 10-6) Located in a small town in upstate New York, Terry's Bakery operates a facility that makes pies for retail sale. The facility has the capacity to make 39,600 ples annually. The plant has only two customers, Panama Food Mart and East Street Coffee. Annual orders for Panama total 19,800 pies, and annual orders for East Street total 9,900 pies. Terry's makes the pies fresh every day and carries no inventory. It also ensure that the customers only sell freshly made pies as well. Variable manufacturing costs are $4.50 per ple, and annual fixed manufacturing costs are $106,920. Required: What cost per ple should the cost system report? Note: Round your answers to 2 decimal places. Cost per pie at capacity Cost per pie at demand
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