ArialBIUSAADE# 6.The Big Cookie Company reports the following average information per cookie package for 2018.This information is only for packaging, not the cookies themselves:Total Cost forCost per100,000Packages$75,000$22,000$52,000$70,000$219,000package$0.75$0.22$0.52Direct MaterialsDirect LaborVariable Factory OverheadFixed Factory Overhead$0.70Total Costs$2.19Another manufacturer offers to sell The Big Cookie Company the packages for $1.60 a package.This would leave idle facilities for Big Cookie, but the accountants estimate $10,000 would be saved in costs related to the packaging machinery.Should The Big Cookie Company allow its packages to be made by another manufacturer?Thoroughly explain your answer.stChp

1.Avoidable Cost is relevant cost in decision making process. and unavoidable cost is not relevant…

H # 6. The Big Cookie Company reports the following average information per cookie package for 2018. This information is only for packaging, not the cookies themselves: Total Cost for Cost per 100,000 package Packages $75,000 $22,000 $52,000 $70,000 $219,000 Direct Materials Direct Labor Variable Factory Overhead Fixed Factory Overhead $0.75 $0.22 $0.52 $0.70 Total Costs $2.19 Another manufacturer offers to sell The Big Cookie Company the packages for $1.60 a package. This would leave idle facilities for Big Cookie, but the accountants estimate $10,000 would be saved in costs related to the packaging machinery. Should The Big Cookie Company allow its packages to be made by another manufacturer? Thoroughly explain your answer.

H # 6. The Big Cookie Company reports the following average information per cookie package for 2018. This information is only for packaging, not the cookies themselves: Total Cost for Cost per 100,000 package Packages $75,000 $22,000 $52,000 $70,000 $219,000 Direct Materials Direct Labor Variable Factory Overhead Fixed Factory Overhead $0.75 $0.22 $0.52 $0.70 Total Costs $2.19 Another manufacturer offers to sell The Big Cookie Company the packages for $1.60 a package. This would leave idle facilities for Big Cookie, but the accountants estimate $10,000 would be saved in costs related to the packaging machinery. Should The Big Cookie Company allow its packages to be made by another manufacturer? Thoroughly explain your answer.

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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Please help with question marks and show work Cookie Business Productions Costs: Direct material $ 0.60 Direct labor $ 1.00 Variable manufacturing overhead $ 0.40 Total variable manufacturing costs per unit $ 2.00 Fixed manufacturing overhead per year $ 139,000.00 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $ 50,000.00 Fixed administrative costs per year $ 65,000.00 Selling price per cookie $ 3.75 Number of cookies produced 2,780,000 Number of cookies sold 2,600,000 Full (absorption) costing : Full cost per unit $ ??? Ending Inventory Full (absorption) costing $ ??? Variable costing : Variable cost per unit $ ??? Ending Inventory Variable costing $ ???
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Thornton Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative $ 36.90 9.00 3.80 5.70 6.60 $135,000 45,000 Thornton planned to make and sell 29,000 copies of the book. Required: a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 28,000 and 30,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 30,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
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H1. Account
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