find out solutions Questions:85Thoen Nuptial Bakery makes very elaborate wedding cakes to order.The company has an activity-based costing system with three activitycost pools. The activity rate for the Size-Related activity cost pool is$0.96 per guest. (The greater the number of guests, the larger the cake.)The activity rate for the Complexity-Related cost pool is $54.24 per tier.(Cakes with more tiers are more complex.) Finally, the activity rate forthe Order-Related activity cost pool is $56.44 per order. (Each weddinginvolves one order for a cake.) The activity rates include the costs ofraw ingredients such as flour, sugar, eggs, and shortening. The activityrates do not include the costs of purchased decorations such asminiature statues and wedding bells, which are accounted forseparately.Data concerning two recent orders appear below:Number of reception guestsNumber of tiers on cakeCost of purchased decorations forNie Wedding Strobl Wedding6712935$ 23.50$ 31.31Assuming that the company charges $584.18 for the4 Strobl weddingcake, what would be the overall margin on the order?a. $157.83b. $101.39c. $132.70d. $483.79

Detailed SolutionTo calculate the overall margin for the Strobl wedding cake, we need to:Determine…

Answered: Questions:85 Thoen Nuptial Bakery makes…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter20: Activity-based Costing (abc)

Section: Chapter Questions

Problem 1R: Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following...

See similar textbooks

Similar questions

Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $0.71 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $29.55 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $74.45 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Multiple Choice Number of reception guests Number of tiers on the cake Cost of purchased decorations for cake Assuming that the company charges $609.19 for the Haupt…
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.14 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $29.87 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $81.56 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 71 189 Number of tiers on the cake 4 6 Cost of purchased decorations for cake $ 23.45 $ 75.32…
Bevard Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.05 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $37.55 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $72.96 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Number of reception guests Number of tiers on the cake Cost of purchased decorations for cake Euertz Wedding 78 8 $15.65 Sparacio Wedding 214 10 $78.12 Assuming that…
A bakery makes very elaborate wedding cakes to order. The company has an activity- based costing system with three activity cost pools. The activity rate for the size-related activity cost pool is $0.98 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the complexity-related cost pool is $38.95 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the order-related activity cost pool is $82.45 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Smith Jones Wedding Wedding Number of reception guestS 75 206 Number of tiers on the cake 9. 12 Cost of purchased decorations for cake $18.75 $77.65 Assuming that the company…
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related $ 1.21 per guest Complexity-related $ 28.30 per tier Order-related $ 74.80 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear…
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Size-related Complexity-related Order-related Activity Rate $ 1.19 per guest $ 28.28 per tier $74.78 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Number of…
sd
None
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pool Activity Rate Size-related................... $1.13 per guest Complexity-related......... $28.22 per tier Order-related................. $74.72 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells,…
Using activity-based costing to make decisions Treat Dog Collars uses activity-based costing. Treat’s system has the following features: Each collar has three parts, direct materials cost is $5.00 per collar, and direct labor cost is $4.00 per collar. Suppose Animal Hut has asked for a bid on 30,000 dog collars. Treat will issue a total of 175 purchase orders if Animal Hut accepts Treat’s bid. Requirements Compute the total estimated cost Treat will incur to purchase the needed materials and then assemble and package 30,000 dog collars. Also compute the cost per collar. For bidding, Treat adds a 40% markup to total cost. What total price will the company bid for the entire Animal Hut order? Suppose that instead of an ABC system, Treat has a traditional product costing system that allocates indirect costs at the rate of $9.50 per direct labor hour. The dog collar order will require 9,000 direct labor hours. What total price will Treat bid using this system’s total cost? Use your…
Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Activity Rates Activity Cost Pool Supporting manufacturing $2 per direct labour-hour $27 per order Order processing Customer service. $68 per customer Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Standard Model Deluxe Model 95 Number of cases 270 Number of orders Direct labour-hours per case. 5 0.25 47 2 0.40 67 Selling price per case $ $ $ 27 Direct materials cost per case $ 24 The company's direct labour rate is $28 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Customer margin
Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Activity Cost Pool Supporting manufacturing Order processing Customer service Activity Rates 2 per direct labour-hour 21 per order 75 per customer Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Standard Model Deluxe Model Number of cases 160 35 Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case 2 0.25 0.40 40 65 12 $ 15 The company's direct labour rate is $24 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City.

SEE MORE QUESTIONS

Recommended textbooks for you

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS