B E F D 1 Determine costs for each product manufactured using ABC; use activity drivers for costs as listed and determine 2 the best cost driver for each manufacturing overhead cost. 3 4 Chocolate Chip Oatmeal Sugar Support Staff 4,200,000.00 2,016,000.00 1,554,000.00 630,000.00 2,000,000.00 1,700,000.00 3,700,000.00 960,000.00 816,000.00 740,000.00 629,000.00 300,000.00 255,000.00 (check figure: chocolate chip total costs = 1,985,078. 5 6 Revenue 7 8 Direct Costs 9 Materials 10 Labor 11 Total Direct 12 13 Indirect Costs 14 Supervisor Salaries 15 Building Utilities 16 Machine Maintenance 17 Building Rent 18 Marketing/Advertising 19 Delivery Costs 20 Accounting/Payroll 21 22 23 Total Costs 24 25 Net Profit (Loss) 26 27 Cost per Unit 28 29 Profit per Unit 30 275,000.00 105,000.00 54,000.00 24,000.00 26,000.00 25,000.00 14,000.00 523,000.00 4,223,000.00 (23,000.00) 43.54 (0.24) Chap 9 Cost Drivers: Support Staff # of Units (case) # of Employees # Square Foot # of Machine Hours # of Deliveries # of Customers Chocolate Chip Oatmeal 47,000 36,000 50 47 5,000 4,000 300 250 25 25 48,000 37,000 Sugar 14,000 45 1,000 190 24 15,000 14 800