Annie's Homemade has been invited to submit a bid to cater a Memorial Day picnic with...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Annie's Homemade has been invited to submit a bid to cater a Memorial Day picnic with 60 servings of four flavors for a total of 240 pre-packaged servings of ice cream. Annie's' average ingredient and packaging costs (including cup, lid, spoon, and stickers) are $1.50 per serving. It would cater the event with one manager, whose is paid an annual salary of $40,000 (or an average of $20.00 per hour), and two additional employees who are paid $8.00 per hour. The wedding party expects Annie's staff to remain on-site for two hours to serve ice cream. The round-trip drive time to the event plus the tent setup and breakdown time is 1.50 hours. The wedding is 40 miles round-trip and the company pickup truck's diesel fuel, diesel exhaust fluid, and oil expenses are $0.75 per mile. The manager catering the wedding would also spend 3.5 hours manufacturing the ice cream for the picnic and portioning it into six-ounce paper cups. He would be assisted by one employee for two hours who would apply a branded flavor sticker and an ingredient label before securing one lid on each cup of ice cream. The company can fulfill the order with its existing capacity and has gathered the following information with respect to its annual fixed overhead: In-store Manufacturing overhead (e.g., equipment depreciation, rent, utilities, insurance, etc.)..... Number of servings produced per year (including mobile servings)..... Pickup truck depreciation, insurance, registration, and vehicle tax..... Mobile sales equipment depreciation (e.g., trailer, mobile freezer and serving tent) ..... Number of mobile servings sold per year..... $ 48,000 80,000 $ 10,000 $ 3,000 16,250 The total bid price splits into two pieces-gross revenue and state and local sales tax (7%). Then, 5% of the gross revenue will be paid to Annie's Homemade's corporate headquarters as a royalty fee. Since the picnic sponsor plans to pay with a credit card, 3% of the total bid price will be paid to the credit card company for processing the payment. What is the total estimated job cost for the Memorial Day picnic? Direct materials Direct labor Variable overhead Fixed overhead Total job cost $ 360 30 336 69 $ 726 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? a. Will be recorded as gross sales revenue? . 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? Show less ▲ If Annie's bids $1,080 (or $4.50 per serving) for this job, what profit (loss) would it realize using your total estimated job cost from requirement 6? Net profit (loss) on this job What is the revised profit for this catering event, at a price of $1,080, if the irrelevant costs are excluded from the analysis? Net profit (loss) on this job What is the total direct labor cost of this job? Manager's labor cost $ Other employee labor cost Total direct labor cost 140 Annie's Homemade has been invited to submit a bid to cater a Memorial Day picnic with 60 servings of four flavors for a total of 240 pre-packaged servings of ice cream. Annie's' average ingredient and packaging costs (including cup, lid, spoon, and stickers) are $1.50 per serving. It would cater the event with one manager, whose is paid an annual salary of $40,000 (or an average of $20.00 per hour), and two additional employees who are paid $8.00 per hour. The wedding party expects Annie's staff to remain on-site for two hours to serve ice cream. The round-trip drive time to the event plus the tent setup and breakdown time is 1.50 hours. The wedding is 40 miles round-trip and the company pickup truck's diesel fuel, diesel exhaust fluid, and oil expenses are $0.75 per mile. The manager catering the wedding would also spend 3.5 hours manufacturing the ice cream for the picnic and portioning it into six-ounce paper cups. He would be assisted by one employee for two hours who would apply a branded flavor sticker and an ingredient label before securing one lid on each cup of ice cream. The company can fulfill the order with its existing capacity and has gathered the following information with respect to its annual fixed overhead: In-store Manufacturing overhead (e.g., equipment depreciation, rent, utilities, insurance, etc.)..... Number of servings produced per year (including mobile servings)..... Pickup truck depreciation, insurance, registration, and vehicle tax..... Mobile sales equipment depreciation (e.g., trailer, mobile freezer and serving tent) ..... Number of mobile servings sold per year..... $ 48,000 80,000 $ 10,000 $ 3,000 16,250 The total bid price splits into two pieces-gross revenue and state and local sales tax (7%). Then, 5% of the gross revenue will be paid to Annie's Homemade's corporate headquarters as a royalty fee. Since the picnic sponsor plans to pay with a credit card, 3% of the total bid price will be paid to the credit card company for processing the payment. What is the total estimated job cost for the Memorial Day picnic? Direct materials Direct labor Variable overhead Fixed overhead Total job cost $ 360 30 336 69 $ 726 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? a. Will be recorded as gross sales revenue? . 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? Show less ▲ If Annie's bids $1,080 (or $4.50 per serving) for this job, what profit (loss) would it realize using your total estimated job cost from requirement 6? Net profit (loss) on this job What is the revised profit for this catering event, at a price of $1,080, if the irrelevant costs are excluded from the analysis? Net profit (loss) on this job What is the total direct labor cost of this job? Manager's labor cost $ Other employee labor cost Total direct labor cost 140
Expert Answer:
Answer rating: 100% (QA)
SOLUTION Based on the information provided here are the calculations for the total estimated job cost profit loss and direct labor cost 1 Total estima... View the full answer
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
Posted Date:
Students also viewed these accounting questions
-
This is a stocklist case arising under 220(b) of our [Delaware] General Corporation Law. The issue is whether a shareholder states a proper purpose for inspection under our statute in seeking to...
-
An eyeglass prescription calls for a lens with an optical power of + 2.9 diopters. What is the focal length of this lens?
-
What is an ISO and how does it affect employee pay?
-
Write requirements for the following products and services: a. Computer. b. Airplane. c. Food Processor. d. Online Banking e. Life Insurance. f. Party Planning.
-
Casey Fisher and Logan Baylor formed a partnership in which the partnership agreement provided for salary allowances of $40,000 and $35,000, respectively. Determine the division of a $20,000 net loss...
-
E3-7 Payroll taxes Davis, Inc. paid wages to its employees during the year as follows: Anderson.... $ 15,400 Bates.... 16,700 Chavez..... 13,000 Devon...... 23,300 Estevez..... 33,200 Franco......
-
George S. Avery signed a letter regarding the unpaid balance on a $20,000 promissory note owed to Jim Whitworth in the form of a letter addressed to Whitworth stating: This is your note for...
-
Dicks cash used in investing activities was $224,164 (in thousands) for fiscal 2021 and $129,271 in 2020 (SEC, 2021). The companys financial statements did not specifically provide its short-term and...
-
Kamet is an investment fund that invests on the Ghana Stock Exchange. In recent times the economy has gone through four different cycles which analyst believe may be repeated in the years ahead....
-
The business was purchased on May 31, 2022. Medical supplies $481 Medical Equipment $16,791 Bank Loan (due June 2023) $27,997 Accounts Payable $8,755 Motor Vehicle $38,618 Accounts Receivable $23,799...
-
You have applied for the role of Market Researcher at ABC Dairies Ltd., a leading company from dairy products industry established around 40 years ago with annual turnover (2020-21) US$ 5.2 billion...
-
Wild Holidays (Pty) Limited is a company that offers various adventure holidays and packages around the country. The company owns a fleet of vehicles to transport tourists, although it owns none of...
-
Explain fully how to find the values for Net Income, Cash Flow and NPV for the Base case, Worst case and Best case. If variable cost increase by 10% 20 or increase by $2 1.1 Now variable cost 22 ...
-
Q3. (20 marks) The table below lists the number of people by labor force classification for the country of HappyLand. Full-time workers Part-time workers University Students Retired people Unemployed...
-
Study the pictures/images below. Obviously these was focus on LT sociology, anthropology and poltical science. Try to do some analysis by finding clues that are synonymous with the main concepts....
-
Thorpe Industries produces chemicals for the swimming pool industry. In one joint process, 10,000 gallons of GSX are processed into 7,000 gallons of xenolite and 3,000 gallons of banolide. The cost...
-
Bandway Company manufactures brass musical instruments for use by high school students. The company uses a normal-costing system, in which manufacturing overhead is applied on the basis of...
-
Albuquerque Wood Crafts, Inc., is a manufacturer of furniture for specialty shops throughout the south-west and has an annual sales volume of $24 million. The company has four major product lines:...
-
The following figures relate to the production of product X: If the years production is 20,000 units and this product uses 25 per cent of total factory production, the unit cost for product X in...
-
A company buys and sells units of product P as follows: Under a FIFO method, the gross profit on the sold item is: A. :20. B. :24. C. :25. D. :30. 1 January buy 2 at 30 1 February 1 March buy 3 at 40...
-
If the company in 10b uses the weighted average method, the gross profit is: A. :20. B. :24. C. :25. D. :30.
Study smarter with the SolutionInn App