Prepare the revised set of cost estimates and profit center income statements using the Direct-Labor Hour Approach, Method 1 allocation. Here is the info

Income Statement in Millions

Total: Counter Sales Custom Cakes Restaurant Frozen

Total Revenue: 119,000 32,000 15,000 42,000 30,000

Materials 35,300 12,800 4,500 10,500 7,500

Marketing and Sales 2,610 10 100 1500 1000

Total Direct Costs 37,910 12,810 4,600 12,000 8,500

Revenue Less Direct Costs 81,090

Indirect Operating Expenses

General Overhead(occupancy, admin) 35,600   

Production Staff 35,700

Delivery 9,520

Total Indirect Operating Exp 80,820

Income before profit center salaries 270

Profit Center Salaries 4

Net Income to Shareholders 266

Production Staff (Hours)

Total Counter Sales Custom Cakes Restaurant Sales Frozen

General Labor 900 200 110 310 280

Pastry Chefs       220 20 80 60 60

Culinary Art and Design 82 5 70 7 0

Total Direct Labor Hours 1202 225 260 377 340

General Overhead Resource Cost Pool Size of Pool Cost Driver

Facility costs (property tax, depreciation) 12,642 Square Feet of Space

Admin, purchasing, and sales support 5,676 Number of Purchase Orders

Utilities 17,282 Estimated kilowatt usage

Total 35,600

General Overhead Cost Driver. Total Counter Sales   Custom Cakes Restaurant Frozen

Square Feet 30,000   16,976 7,820 2,602 2,602

# of purchase orders 164 64 38 31 31

Estimated Kilowatt Usage 662,700 375,000 127,000 82,750 77,950

Production Staff

General Laborers 24,990

Pastry Chefs    8,925

Culinary Art and Design 1,785

Total Production Staff 35,700

Delivery (Mileage) Total Counter Sales Custom Cakes Restaurant Frozen

16,274 4,800 2,750 3,200 5,524

Answer rating: 100% (QA)

Solution Part A Statement Showing Profit after allocation of I... View the full answer