products using a) Will’s old costing method; b) The new costing method. 1 1a) Based on Will’s old costing method (Volume Based Costing): • California Creamery has a budgeted manufacturing overhead of $600‚000 and a budgeted direct labour cost of $300‚000 • Overhead rate per direct labour cost => $600‚000/$300‚000 = $2 From Exhibit 2 CALIFORNIA CREAMERY‚ INC. Two Product Examples (2004 Data) Polynesian Fantasy • Direct labour $1.20/gallon Overhead assigned to: Vanilla $1.20/gallon Polynesian
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Natalie Simmermon ACC 503 California Creamery‚ Inc. (Activity-Based Costing) 1. What is the cost of the two products under traditional costing? Under traditional accounting the costs for each flavor were intuitively wrong. The cost to produce a gallon of Polynesian was $5.60‚ only 20 cents more than Vanilla comparatively. One would assume that an exotic flavor would have a significantly higher cost proportionally. 2. What is the cost of the two products under activity-based costing
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EXECUTIVE SUMMARY Boston Creamery‚ Inc‚ is an ice cream company that manufactures and distributes ice cream to wholesalers and retailers. In 1973‚ the company had installed a new financial planning and control system that compares budgeted results against actual results and be able to highlight things that needed corrective actions or commend things that resulted in a favorable overall variance. This year‚ the division has a favorable operating income variance of $71‚700. Highlights: · Jim
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System Study of New Zealand Creamery‚ Inc. In Partial Fulfillment Of the Requirements for the Course COMS331P – Practicum Submitted to Ms. Roda N. Sanares Faculty‚ Computer Studies Department De La Salle University – Dasmariñas College of Science Dasmariñas‚ Cavite Vernon Edward E. Guintu BCS32 6/1/2012 1. Company Background a. History of the Company The company started out in 1958 as a joint venture with New Zealand Dairy Board. Under this
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They can highlight areas which are to be addressed urgently. As per the case‚ they only wish to see the items that need their concern so that action can be taken the next year‚ 1974. Boston Creamery must increase advertisements of their products to address the increase in market size. Boston Creamery‚ Inc. lost 1.0% market share – from 50% to only 49%‚ despite the favorable increase in market size variance of $ 167‚610.00 (See Exhibit 2). This was highlighted from the unfavorable result of $ 55
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Case 4: Boston Creamery Introduction A new financial planning and control system is only as good as a company’s capacity to implement it effectively. But most importantly‚ many employees see the new system as an end in itself‚ instead of a means to an end. The way standards are formulated play a crucial role in the results of these variances. For instance‚ management decided to use the sales forecasts based on what they made and incurred in the previous year. This would normally be the case
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Cold Stone Creamery. The first thing that we had to do was find out what franchising really was. We all had a basic understanding of what franchising was and to become a franchisee‚ but after further research we realized there was a lot more that we didn ’t know. We researched everything we could about Cold Stone Creamery. We conducted a survey to find out if Cold Stone really was everyone ’s favorite ice cream place. We found out the mission and the vision that Cold Stone Creamery has for their
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MEMO Date: October 20‚ 2014 To: Mr. Jim Peterson‚ President‚ Boston Creamery‚ Inc.‚ Ice Cream Division From: Subject: Evaluating the decision choices of Boston Creamery to improve budgeting Introduction Boston Creamery is currently experiencing difficulties with regards to its budgeting process and variance analysis. For the fiscal year 1973‚ the Ice Cream Division has a favorable operating income variance of $71‚700. The President‚ Jim Peterson feels that the comparisons between budgeted
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Case Name: Boston Creamery‚ Inc. Short Cycle Process: Who: Frank Roberts‚ VP Sales & Marketing‚ Boston Creamery‚ Inc. When: December 31‚ 1973 Where: Case facts not given Issues: 1. The current variance analysis used for the 1973 fiscal years shows an overall favorable net variance of $71‚700. This is an aggregate net figure based upon the favorable variance due to sales and the unfavorable variance due to operations. This net variance figure fails to highlight areas of deficiency to help identify
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1. Yes‚ Cold Stone Creamery does represent a high performance approach to planning. They have a fun and positive approach to their franchise; however they have great expectations to achieve success. Cold Stone started with a mission: “We will make people happy around the world by selling the highest quality‚ most creative ice cream experience with passion‚ excellence‚ and innovation.” From the company-wide goal to the organizational goals‚ each one is numerically defined and measurable. So the
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