! Required information Annie's Homemade has been invited to submit a bid to cater a Memorial Day picnic with 60 servings of four flavors for a total of 240 pre-packaged servings of ice cream. Annie's' average ingredient and packaging costs (including cup, lid, spoon, and stickers) are $1.50 per serving. It would cater the event with one manager, whose is paid an annual salary of $40,000 (or an average of $20.00 per hour), and two additional employees who are paid $8.00 per hour. The wedding party expects Annie's staff to remain on-site for two hours to serve ice cream. The round-trip drive time to the event plus the tent setup and breakdown time is 1.50 hours. The wedding is 40 miles round-trip and the company pickup truck's diesel fuel, diesel exhaust fluid, and oil expenses are $0.75 per mile. The manager catering the wedding would also spend 3.5 hours manufacturing the ice cream for the picnic and portioning it into six-ounce paper cups. He would be assisted by one employee for two hours who would apply a branded flavor sticker and an ingredient label before securing one lid on each cup of ice cream. The company can fulfill the order with its existing capacity and has gathered the following information with respect to its annual fixed overhead: In-store Manufacturing overhead (e.g., equipment depreciation, rent, utilities, insurance, etc.)..... Number of servings produced per year (including mobile servings)..... Pickup truck depreciation, insurance, registration, and vehicle tax..... Mobile sales equipment depreciation (e.g., trailer, mobile freezer and serving tent) Number of mobile servings sold per year..... Required: 1. What is the total direct materials cost of this job? 2. What is the total direct labor cost of this job? $ 48,000 Require... Require... 1 2 What is the total direct labor cost of this job? Manager's labor cost $ 140 Other employee labor cost Total direct labor cost 80,000 $ 10,000 The total bid price splits into two pieces-gross revenue and state and local sales tax (7%). Then, 5% of the gross revenue will be paid to Annie's Homemade's corporate headquarters as a royalty fee. Since the picnic sponsor plans to pay with a credit card, 3% of the total bid price will be paid to the credit card company for processing the payment. < Requirement 1 $3,000 16,250 X Answer is not complete. Complete this question by entering your answers in the tabs below. Requirement 2 >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information
Annie's Homemade has been invited to submit a bid to cater a Memorial Day picnic with 60 servings of four
flavors for a total of 240 pre-packaged servings of ice cream. Annie's' average ingredient and packaging
costs (including cup, lid, spoon, and stickers) are $1.50 per serving. It would cater the event with one
manager, whose is paid an annual salary of $40,000 (or an average of $20.00 per hour), and two additional
employees who are paid $8.00 per hour. The wedding party expects Annie's staff to remain on-site for two
hours to serve ice cream. The round-trip drive time to the event plus the tent setup and breakdown time is
1.50 hours. The wedding is 40 miles round-trip and the company pickup truck's diesel fuel, diesel exhaust
fluid, and oil expenses are $0.75 per mile.
The manager catering the wedding would also spend 3.5 hours manufacturing the ice cream for the picnic
and portioning it into six-ounce paper cups. He would be assisted by one employee for two hours who
would apply a branded flavor sticker and an ingredient label before securing one lid on each cup of ice
cream. The company can fulfill the order with its existing capacity and has gathered the following
information with respect to its annual fixed overhead:
In-store Manufacturing overhead (e.g.,
equipment depreciation, rent, utilities,
insurance, etc.).....
Number of servings produced per year
(including mobile servings).....
Pickup truck depreciation, insurance,
registration, and vehicle tax.....
Mobile sales equipment depreciation (e.g.,
trailer, mobile freezer and serving tent)
Number of mobile servings sold per
year.....
Required:
1. What is the total direct materials cost of this job?
2. What is the total direct labor cost of this job?
$ 48,000
Require... Require...
1
2
What is the total direct labor cost of this job?
Manager's labor cost $ 140✔
Other employee labor
cost
Total direct labor cost
80,000
$ 10,000
The total bid price splits into two pieces-gross revenue and state and local sales tax (7%). Then, 5% of the
gross revenue will be paid to Annie's Homemade's corporate headquarters as a royalty fee. Since the picnic
sponsor plans to pay with a credit card, 3% of the total bid price will be paid to the credit card company for
processing the payment.
< Requirement 1
$ 3,000
16,250
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Requirement 2 >
Transcribed Image Text:Required information Annie's Homemade has been invited to submit a bid to cater a Memorial Day picnic with 60 servings of four flavors for a total of 240 pre-packaged servings of ice cream. Annie's' average ingredient and packaging costs (including cup, lid, spoon, and stickers) are $1.50 per serving. It would cater the event with one manager, whose is paid an annual salary of $40,000 (or an average of $20.00 per hour), and two additional employees who are paid $8.00 per hour. The wedding party expects Annie's staff to remain on-site for two hours to serve ice cream. The round-trip drive time to the event plus the tent setup and breakdown time is 1.50 hours. The wedding is 40 miles round-trip and the company pickup truck's diesel fuel, diesel exhaust fluid, and oil expenses are $0.75 per mile. The manager catering the wedding would also spend 3.5 hours manufacturing the ice cream for the picnic and portioning it into six-ounce paper cups. He would be assisted by one employee for two hours who would apply a branded flavor sticker and an ingredient label before securing one lid on each cup of ice cream. The company can fulfill the order with its existing capacity and has gathered the following information with respect to its annual fixed overhead: In-store Manufacturing overhead (e.g., equipment depreciation, rent, utilities, insurance, etc.)..... Number of servings produced per year (including mobile servings)..... Pickup truck depreciation, insurance, registration, and vehicle tax..... Mobile sales equipment depreciation (e.g., trailer, mobile freezer and serving tent) Number of mobile servings sold per year..... Required: 1. What is the total direct materials cost of this job? 2. What is the total direct labor cost of this job? $ 48,000 Require... Require... 1 2 What is the total direct labor cost of this job? Manager's labor cost $ 140✔ Other employee labor cost Total direct labor cost 80,000 $ 10,000 The total bid price splits into two pieces-gross revenue and state and local sales tax (7%). Then, 5% of the gross revenue will be paid to Annie's Homemade's corporate headquarters as a royalty fee. Since the picnic sponsor plans to pay with a credit card, 3% of the total bid price will be paid to the credit card company for processing the payment. < Requirement 1 $ 3,000 16,250 X Answer is not complete. Complete this question by entering your answers in the tabs below. Requirement 2 >
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