ABC ~ BUAD 305

ABC ~ BUAD 305 - BUAD 305 1 Compute Sly Stone's...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
BUAD 305 1. Compute Sly Stone's predetermined overhead rate for the year. Estimiated Annual Overhead Cost/ Estimated Annual Operating Activity(Direct Labout) = Predetermined overhead rate = $600000/ $300000 = 200% 2. Compute the full production cost (per gallon) of the "Willie Nelson's Country Peach Cobbler" and "Vanilla" products using: a. Sly's old costing method Willie Nelson's Country Peach Cobbler Vamilla Direct Metherial $2.05 $1.65 Direct Labor 1.25 1.25 Manufacturing Overhead 2.5 (1.25*200%) 2.5 (1.25*200%) Production cost per unit $5.80 per gallion $5.40 per gallion b.The new costing method (Mario's suggestion) Activity Cost Pools Estimited Overhead Cost Drivers Activity-Based Overhead Purchasing $80,000 859 orders $93.13 Material Handling 95,000 1806 setups $52.60 Blending 122,000 1100 hours $110.91 Freezing 175,000 1836 hours $95.32 Packaging 110,000 1200 hours $91.67 Quality control 18,000 276 batches $65.22 Total $600,000 Willie Nelson's Country Peach Cobbler Units Rates Cost Assigned
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/29/2008 for the course BUAD 305 taught by Professor Davila during the Spring '07 term at USC.

Page1 / 4

ABC ~ BUAD 305 - BUAD 305 1 Compute Sly Stone's...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online