Problem 5-55 Gourmet Specialty Coffee Company

Managerial Accounting: Creating Value in a Dynamic Business Environment

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1. Using GSCC's current product - costing system: A. Determine the company's predetermined overhead rate using direct - labor cost as the s total manufacturing - overhead cost $12,000,000  budgeted direct - labor cost $1,200,000  Predetermined overhead rate $10.00 per direct - labor  B. Determine the full product costs and selling prices of one pound of Jamaican coffee and Jamaican Columbian Direct material $2.90  $3.90  Direct labor 0.4 0.4 Overhead $4.00 $4.00 Full product cost $7.30  $8.30  Markup $2.19  $2.49  Selling price $9.49  $10.79 
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single cost driver. r dollar d one pound of Colombian coffee.
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2. Develop a new product cost, using an activity - based costing approach, for one pound of Jama Activity Cost Driver Budgeted ABudgeted Cost Unit Cost Purchasing Purchase orders 2316 $2,316,000  $1,000  Material handling Setups 3600 $2,880,000 $800 Quality control Batches 1440 $576,000 $400
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This document was uploaded on 11/24/2010.

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Problem 5-55 Gourmet Specialty Coffee Company - 1. Using...

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