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    South Dakota Microbrewery

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    Kayla Friedlander South Dakota Microbrewery Case Study 2/24/13 1. The total product and per bottle cost under allocation based on direct-labor hours for Buffalo Ale‚ Bismark Bock and Four Heads Stout is $450.86 and $0.85‚ $347.79 and $0.91 and $369.96 and $0.86‚ respectively. Under activity based costing the total product and per bottle cost for Buffalo Ale‚ Bismark Bock and Four Heads Stout is $317.58 and $0.60‚ $615.5 and $1.6 and $379.29 and $0.88‚ respectively. Calculations can be found

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    1. A/B. Buffalo Ale: A. Direct Materials: 62.80 Direct Labor: 108.00 Labor Hours: 18 Hours 18 x 15.57 = 280.26 Cases Created: 22 x 24 (Quantity of Bottles/Case) = 528 Total Cost Per Batch: $451.06 Cost Per Bottle = 451.06/528 = $0.85/Bottle B. Direct Materials: 62.80 Direct Labor: 108.00 Fermentation Days: 13.06 x 3 = 39.18 Direct Labor Hours: 1 x 18 = 18 Machine Hours: 0.07 x 110 = 7.7 Number of Orders: 8.36 x 2 = 16.71 Quality Control Inspections:

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    South Dakota Microbrewery

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    1. As Exhibit 1 shown‚ I first calculate the predetermined overhead rate‚ which is $15.57 per direct labor hour. And I distributed the dollar amount to different proportion based on Direct-Labor hours to get the overhead cost. Sum the overhead and direct cost to get the total cost; this will be the total cost of producing a batch of beer label. Therefore‚ we need to divide them up by the bottle per batch in order to know the cost per each bottle for each label. As shown in Exhibit 2‚ I have

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    South Dakota Microbrewery

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    QUESTION 1 Plant-wide allocation based Predetermined overhead rate =$116750/7500 DL hours =$15.57 per direct labor-hours Overhead cost Direct cost Total cost Cost per batch Cost per bottle Ale $15.57*18=$280.26 $62.60 $108 $450.86 $1.8 $0.85 Bock $15.57*12=$186.84 $88.95 $72 $347.79 $2.9 $0.91 Stout $15.57*13=$202.41 $89.55 $78 $369.96 $3.08 $0.86 Activity-based cost system Cost Allocation rate Buffalo Ale Bismark Bock Four Heads

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    cost of individual activities using the most relevant cost driver. In the case of SDM there is value in looking at the more complex costing system‚ the activity-based system‚ because their overhead costs cover a varied list of  cost types which have no single cost driver that can be used to accurately allocate their overhead expenses to their different product lines. 4. One of the primary problems that South Dakota Microbrewery (SDM) faces is that local competition in the ale market is driving the cost

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    South Dakota Microbrewery (SDM) – Case Study Franco Borrello Key Relevant Information Product mix: Three different labels: Ale‚ Stout‚ Bock. Market info: Ale label is sold primarily to College bars‚ in large shipments. Stout and Bock labels are sold to upscale restaurants‚ in small shipments. Market forecast: Ale label: High local competition‚ high price fluctuations. Bock market forecast: Inelastic to small price changes. Low local competition and steady demand. Gross Margin (GM) target: 30% for

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    Building a Microbrewery

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    Building a Microbrewery http://www.cemcorp.com/articles/articles.htm Class‚ there is a lot of information here and much does not apply to what we are doing. So pick and choose what you think you can use Part one of three The step-by-step approach to planning‚ building and running a small brewery is the only way to fly. Written by: Mike Coulter‚ P.Eng. cemcorp LTD. - Copyright 1987 So you want to build and operate a brewpub or microbrewery‚ huh? This article is intended as a brief reference

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    Dakota Bank Case

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    Great Dakota Bank Case Assignment Questions 1. What is the value proposition for online banking? Explain. How should Great Dakota Bank communicate this value to its customers? The value proposition for online banking is to ensure customers how valuable and useful online banking can be for them. Customers who engage in online banking are able to constantly keep track of their spending‚ pay bills online‚ transfer money between accounts‚ and know where their money is going out and

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    Dakota Case Study

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    Case Study Dakota Office Supply Shadi Wadi-Ramahi Instructor: Roger Waibel MBA 510 Financial and Managerial Accounting Master of Business Administration School of Adult and Extended Learning Oakland City University September 30th‚2010 * Contents 1 Background Information 3 1.1 People / Key Players 3 1.2 Chronology of Key Relevant Events 3 1.3 Key Facts 4 1.4 Concepts 4 1.5 Assumptions 4 1.6 Point of View 5 2 Problem Statement 5 3 Problem Causal Analysis 5 4 Management

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    “We finally get to leave for South Dakota today.” Brody said. “ I know I can’t wait to get there‚ but it’s going to take 13 hours to get there.” I said. “Yea but we can sleep the whole way there and when we get there it’s going to be lots of fun.” Brody said. “That is true‚ well ok I am going to sleep I will see you when we get to South Dakota.” I said. The next day when I woke up we had just arrived to South Dakota. We still had 30 minutes to go before we would arrive to our campsite.When we got

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