Labor Hours Warehousing 166 304 236 144 135 985 Number of Invoices 145 500 333

Labor hours warehousing 166 304 236 144 135 985

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Labor Hours Warehousing 166 304 236 144 135 985 Number of Invoices 145 500 333 455 525 1,958 Ounces 0 - - 65,700 76,650 142,350 Labor Hours, Clean & Repair 98 312 177 88 122 797 Cost Driver Percentage of Total for each Product Type Number of Bottles 0.15 0.38 0.26 0.11 0.10 1.00 Machine Hours Separating 0.08 0.38 0.31 0.12 0.10 1.00 Machine Hours Mixing - - - 0.52 0.48 1.00 Machine Hours, Bottling 0.15 0.33 0.24 0.14 0.14 1.00 Labor Hours Warehousing 0.17 0.31 0.24 0.15 0.14 1.00 Number of Invoices 0.07 0.26 0.17 0.23 0.27 1.00 Ounces - - - 0.46 0.54 1.00 Labor Hours, Clean & Repair 0.12 0.39 0.22 0.11 0.15 1.00 Second: Allocate Activity Costs to Products ACTIVITIES Whole Milk Low Fat Milk Skim Milk Milk Eggnog Total Milking 26,448 66,121 46,285 19,836 16,938 175,628 Separating/Past… 6,123 29,700 24,280 9,290 7,882 77,275 Mixing - - - 38,376 35,386 73,762 Bottling 227,923 495,934 357,347 214,179 202,726 1,498,110 Warehousing 15,293 28,006 21,742 13,266 12,437 90,744 G&A 10,073 34,734 23,133 31,608 36,471 136,019 Receiving and Inspecting - - - 70,552 82,310 152,862 Cleaning and Repairs 3,311 10,542 5,981 2,973 4,122 26,929 TOTAL $ 289,172 $ 665,037 $ 478,767 $ 400,081 $ 398,272 2,231,329 Number of Units produced 292,000 730,000 511,000 219,000 187,000 1,939,000 Cost per unit $ 0.990 $ 0.911 $ 0.937 $ 1.827 $ 2.130 Plus: Purchases from External Suppliers Bottles @ $.75 $ 219,000 $ 547,500 $ 383,250 $ 164,250 $ 140,250 $ 1,454,250 Cocoa @ $.05 10,950.00 $ 10,950 Sugar @ $.05 10,950.00 9,350.00 $ 20,300 Spices @ $.08 14,960.00 $ 14,960 Total External Cost $ 219,000 $ 547,500 $ 383,250 $ 186,150 $ 164,560 $ 1,500,460 Total Cost for Each Product $ 508,172 $ 1,212,537 $ 862,017 $ 586,231 $ 562,832 $ 3,731,789 Total Cost per bottle $ 1.740 $ 1.661 $ 1.687 $ 2.677 $ 3.010 Price $ 1.90 $ 1.90 $ 1.90 $ 1.90 $ 2.25 Contribution $ 0.16 $ 0.24 $ 0.21 $ (0.78) $ (0.76)
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  • Fall '09
  • Chavis

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