2) ACCY2115_QP.pdf - Adobe Acrobat Reader DC X IS Chapter 4 Textbook. ACCY2115_QP.pdf x Chapter 5 Textbook... (? 7 /9 (+ 100% Question 4 Tasty Bakeries produces and sells two types of cakes, which are the Tiramitsu Chocolate (TC) and Banana Vanilla (BV) cakes. The price of one TC cake is $200 while the BV cake sells for $90/cake. A TC cake requires $72 of direct materials and $24 of direct labour cost per hour to produce. Each TC cake requires one and half direct labour hours and estimated that annual output will be 1,000 cakes. A BV cake requires $53 of direct materials and $12 of direct labour cost per hour to produce. Each BV cake requires one direct labour hour and it estimated that annual output would be 500 cakes. The management accountant of Velvet Bakeries has recently attended an activity-based costing seminar and decided to do some research on cost pools and cost drivers for the company. He has come up with the following data: Cost pools Cost pool costs Amounts of Cost drivers (TC) BV) Indirect labour $7,836 40,000 hrs 80,000 hrs Batch set-ups $4,950 200 set-ups 100 set-ups Product sustaining $6.024 1 cake 1 cake Other $990 1+ Type here to search 0 # x ] 6 9 0 5:23 PM 8/5/20202) ACCY2115_QP.pdf - Adobe Acrobat Reader DC X IS Chapter 4 Textbook. ACCY2115_QP.pdf X Chapter 5 Textbook... (? 7 /9 100% The above four cost pools represent the total manufacturing overhead costs of $19,800. The "other' cost pool are costs related to idle capacity and includes organisation-sustaining costs, which would not be allocated to the two models of cakes' cost objects. Currently Tasty Bakeries is using traditional costing and they applies the cost of manufacturing overheads to the cakes using direct labour hours. Required: (a) Using the traditional costing system, calculate the product profit for the TC and BV types of cakes. (6 marks) (b) Using the activity-based costing system, calculate the product margins for the TC and BV types of cakes, assuming Tasty Bakeries uses the cost pools data supplied by the management accountant. (8 marks) (c) Discuss why there is a difference in the answers between part (a) and (b). (3 marks) (Total: 17 marks) 1+ Type here to search 6 9 0 EM 5:23 PM 8/5/2020