Question: 4. It Annie's assumes its mobile sales variable overhead includes $ 0 . 1 5 per mile for the pickup truck, what is the total

4. It Annie's assumes its mobile sales variable overhead includes $0.15 per mile for the pickup truck, what is the total variable overhead cost assigned to this job?

5. Assume Annie's has two fixed overhead costs pools. The first pool includes in-store fixed manufacturing overhead and its allocate base is number of servings produced per year. The second pool includes the pickup truck's fixed operating costs and the mobile s equipment depreciation and its allocation base is the number of mobile servings sold per year.

a. What is the overhead rate in each of these two cost pools?

b. How much total fixed overhead cost would be allocated to this job from these two cost pools?

6. What is the total estimated job cost for the Memorial Day picnic?

7. Assume Annie's bids $1,080 for this job (or $4.50 per serving). If it wins the bid, how much of the total bid receipts:

a. Will be recorded as gross sales revenue?

b. Will be paid to governing authorities as sales tax?

c. Will be paid to Annie's Homemade corporate headquarters?

d. Will be disbursed to the company that processes the credit card payment?

e. Will be recorded as net sales revenue?


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