Total Overhead Costs Table 4: Amanda's Current Estimated Overhead Cost per Bar Bars per hour $24,800 175 Production hours per day X 8.0 Average Work Days per Month X 20.5 Practical Capacity Volume (# Bars) per +28,700 Month Overhead cost per Bar $0.86 Table 5: Current Monthly Sales based on Regular Orders by Product Line Total # Bars Product Line 1: 1.25 oz. Organic 10,000 Product Line 2: 1.25 oz. Non-Organic 5,000 Product Line 3: 3.0 oz. Non- Organic 200 Product Line 4: 3.25 oz. Organic 300 across all orders Table 1: Budgeted Monthly Overhead Cost Breakdown Overhead Cost Item Cost ($) Production Supplies 3,600 Facility Costs 6,300 Purchase Support Costs 2,000 Customer Order Support Costs 4,000 Master Chocolatier Salary 3,900 VP of Operations Salary 5,000 Total Budgeted Overhead Costs $24,800 Table 2: Average Selling Prices and Direct Material Costs of C.C. Chocolate Bars 1.25 oz. Bar 3.0 oz. Bar 3.25 oz. Bar Selling Price per Bar Non-organic $1.50 $2.40 N/A Organic $2.00 ΝΑ $3.00 Cost of Chocolate Ingredients Non-organic $0.18 $0.44 N/A Organic $0.33 N/A $0.83 Cost of Foil $0.03 $0.06 $0.06 Cost of Label $0.03 $0.08 $0.08 Total Direct Material Cost per Non-organic $0.24 $0.58 N/A Bar Organic $0.39 N/A $0.97 Table 3: Amanda's Current Direct Labour Cost Estimates per Bar Production Department 1.25 oz. Bar 3.0 oz. Bar 3.25 oz. Bar Pouring $0.03 $0.08 $0.08 Inspection $0.05 $0.02 $0.02 Foiling $0.06 $0.06 $0.06 Labelling $0.06 $0.06 $0.06 Total Direct Labour Cost per Bar $0.20 $0.22 $0.22 BU 247 Case Assignment | Page 5 Table 4: Amanda's Current Estimated Overhead Cost per Bar Total Overhead Costs Bars per hour $24,800 175 Production hours per day X 8.0 Average Work Days per Month X 20.5 Practical Capacity Volume (# Bars) per +28,700 Month Overhead cost per Bar $0.86
Total Overhead Costs Table 4: Amanda's Current Estimated Overhead Cost per Bar Bars per hour $24,800 175 Production hours per day X 8.0 Average Work Days per Month X 20.5 Practical Capacity Volume (# Bars) per +28,700 Month Overhead cost per Bar $0.86 Table 5: Current Monthly Sales based on Regular Orders by Product Line Total # Bars Product Line 1: 1.25 oz. Organic 10,000 Product Line 2: 1.25 oz. Non-Organic 5,000 Product Line 3: 3.0 oz. Non- Organic 200 Product Line 4: 3.25 oz. Organic 300 across all orders Table 1: Budgeted Monthly Overhead Cost Breakdown Overhead Cost Item Cost ($) Production Supplies 3,600 Facility Costs 6,300 Purchase Support Costs 2,000 Customer Order Support Costs 4,000 Master Chocolatier Salary 3,900 VP of Operations Salary 5,000 Total Budgeted Overhead Costs $24,800 Table 2: Average Selling Prices and Direct Material Costs of C.C. Chocolate Bars 1.25 oz. Bar 3.0 oz. Bar 3.25 oz. Bar Selling Price per Bar Non-organic $1.50 $2.40 N/A Organic $2.00 ΝΑ $3.00 Cost of Chocolate Ingredients Non-organic $0.18 $0.44 N/A Organic $0.33 N/A $0.83 Cost of Foil $0.03 $0.06 $0.06 Cost of Label $0.03 $0.08 $0.08 Total Direct Material Cost per Non-organic $0.24 $0.58 N/A Bar Organic $0.39 N/A $0.97 Table 3: Amanda's Current Direct Labour Cost Estimates per Bar Production Department 1.25 oz. Bar 3.0 oz. Bar 3.25 oz. Bar Pouring $0.03 $0.08 $0.08 Inspection $0.05 $0.02 $0.02 Foiling $0.06 $0.06 $0.06 Labelling $0.06 $0.06 $0.06 Total Direct Labour Cost per Bar $0.20 $0.22 $0.22 BU 247 Case Assignment | Page 5 Table 4: Amanda's Current Estimated Overhead Cost per Bar Total Overhead Costs Bars per hour $24,800 175 Production hours per day X 8.0 Average Work Days per Month X 20.5 Practical Capacity Volume (# Bars) per +28,700 Month Overhead cost per Bar $0.86
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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Question
PLEASE HELP ME SOLBE THIS. I can't get the steps right.
Quesiton: Determine the total cost and the gross profit margin for each of the four product lines per
bar using activity-based costing. Identify the most profitable and least profitable product
line based on the activity-based costing system.
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