# Acc 201

Topics: Marketing, Cost, Cookies Pages: 3 (272 words) Published: December 4, 2011
Question 1:
1. Activity-cost-driver rate for packing:

,950hours)) = 157.89/ hr

2. ABC system for sugar cookie

Oven costs: ,)) x 1 = \$110.53

Packing costs: 157.89 x 0.5 = \$78.95

B. Estimated operating profit for cookies

Selling price:

\$0.75 x 1,000 = \$750

Less Direct material costs:

\$0.15 x 1000 = (\$150)

Less Direct labor costs:

\$0.02 x 1000 = (\$20)

(\$189.48)

? Profit: \$390.52

,)) = \$150

B. Estimated operating profit for cookies

Selling price:

\$0.75 x 1,000 = \$750

Less Direct material costs:

\$0.15 x 1000 = (\$150)

Less Direct labor costs:

\$0.02 x 1000 = (\$20)

(\$150)

? Profit: \$430

Question 2:
a.

b.

|Actual result |Flexible |Standard result | |(Actual input quantity x Actual price) |(Actual input quantity x Budgeted price) |(Budgeted input quantity | | | |x budgeted price) |

Direct material
3, 900 x \$7.753,900 x \$7.54,000 x \$7.5
\$30,225 \$29,250 \$30,000

Price varianceEfficiency variance
\$975(U) \$750(F)

\$225(U)
Flexible budgeted variance

Direct labor:
1,240 x \$9.251,240 x \$91,200 x \$9
\$11,470 \$11,160 \$10,800

Price varianceEfficiency...