Exercises: 5.Lasse has an ice-cream stall. The budgeted costs for the following year are as follows: - material (ice-cream, chocolate...) - rent - salaries - depreciation - interest - other overheads 45 000 23 320 79 300 5 400 6 100 2 900 a) How much is the overhead rate (without profit)? b) How much is the overhead rate, if the expected profit for the following year is 10 000 euros? c) How much should the price of an ice-cream serving be, if the direct costs are 1,20 euros. Use the overhead rate of b)?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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Exercises:
5.Lasse has an ice-cream stall. The budgeted costs for the following year are as
follows:
- material (ice-cream, chocolate...)
- rent
- salaries
- depreciation
- interest
- other overheads
45 000
23 320
79 300
5 400
6 100
2 900
a)
How much is the overhead rate (without profit)?
b)
How much is the overhead rate, if the expected profit for the following
year is 10 000 euros?
c)
How much should the price of an ice-cream serving be, if the direct costs
are 1,20 euros. Use the overhead rate of b)?
Transcribed Image Text:Exercises: 5.Lasse has an ice-cream stall. The budgeted costs for the following year are as follows: - material (ice-cream, chocolate...) - rent - salaries - depreciation - interest - other overheads 45 000 23 320 79 300 5 400 6 100 2 900 a) How much is the overhead rate (without profit)? b) How much is the overhead rate, if the expected profit for the following year is 10 000 euros? c) How much should the price of an ice-cream serving be, if the direct costs are 1,20 euros. Use the overhead rate of b)?
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