Acct 3334 Bonus Assignment Problem Winter 2011

Acct 3334 Bonus - Accounting 3334 Bonus Assignment Problem This problem is'not for the faint of heart Part A Neverfreeze Ice Cream Company(referred

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Accounting 3334 Bonus Assignment Problem This problem is 'not for the faint of heart'. .. Part A Neverfreeze Ice Cream Company (referred to as NIC) is a U.S. company that manufactures ice cream. NIC uses standard costing for its accounting and control systems. The operations up to the hardening rooms are Mixing, Freezing, and Packing. The standard formula for a batch of mix is: milk, 600 lbs.; cream, 240 lbs.; and sugar, 360 lbs. Flavours are added at the Freezing operation where 800 lbs. of mix are used per 100 gallons of ice cream produced. Standards include 25 lbs of flavour per 100 gallons of chocolate ice cream, and 19.9 lbs. of flavour per 100 gallons of strawberry ice cream. Standard material usage prices per lb. are milk, $0.096; cream, $0.24; sugar, $0.165; chocolate flavour, $0.72; and strawberry flavour, $1.20. Packaging costs are $.27 per gallon. Standard labour rates are: $0.0582 per lb. of formula for mixing; $0.24 per gallon for freezing; and $0.45 per gallon packed for packing.
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This note was uploaded on 10/23/2011 for the course ACCT 3334 taught by Professor Don during the Spring '11 term at Dalhousie.

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Acct 3334 Bonus - Accounting 3334 Bonus Assignment Problem This problem is'not for the faint of heart Part A Neverfreeze Ice Cream Company(referred

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