CAB https://clemson.instructure.com/courses/29200/modules/items/542352 Davis, Hanagertal Accounting, se Help I Chapter7 Homework Question 1 Coronado's Nut House is a processor and distributor of a variety of different nuts. The company buys nuts from around the world and roasts, seasons, and packages them for resale. Coronado's Nut House currently offers 23 different types of nuts in one-pound bags through catalogs and gourmet shops. The company's major cost is that of the raw nuts; however, the predominantly automated roasting and packing processes consume a substantial amount of manufacturing overhead cost. The company uses relatively little direct labor Question 1 Some of Coronado's nuts are very popular and sell in large volumes, but a few of the newer types sell in very low sales volumes. Coronado's prices its nuts at cost (including overhead) plus a markup of 40%. If the resulting prices of certain nuts are significantly higher than the market price, ad ustments are made. Although the company competes primarily on the quality of its products, customers are price conscious. Revlew Besulbs by Study Data for the annual budget include manufacturing overhead of $5,651,900, allocated on the basis of each product's direct labor cost. The annual budgeted direct labor cost totals $1,229,000. Based on the sales budget and raw materials standards, purchases and use of raw materials are expected to total $9,170,000 for the year The unit costs of a one-pound bag of two of the company's products follows. shews Chestnu $4.30 0.260.26 Raw materials $3.26 Direct labor Coronado's controller believes that the traditional costing system may be providing misleading cost information, so she has developed the following analysis of the annual budgeted manufacturing costs. Budgeted Budget Cost Cost Driver Activity 11,490$1,217,940 Number of setups1,7701,504,500 288,000 1,628,940 566,100 446,420 $5,651,900 Purchase orders Material handling Quality control Roasting Seasonin Packaging Number of batches Roasting hours Seasoning hours Packaging hours 600 95,820 33,300 26,260 Total manufacturing overhead cost Data regarding the annual production of cashews and chestnuts follow. All raw materials purchased during the period are processed and all nuts produced are sold within the period. Cashews Expected sales Batch size 118,900 lbs 10,000 lbs. 3,000 lbs. 1,000 lbs. vious Next MacBook Air CAB https://clemson.instructure.com/courses/29200/modules/items/542352 Davis, Hanagertal Accounting, se Help I Chapter7 Homework Question 1 Coronado's Nut House is a processor and distributor of a variety of different nuts. The company buys nuts from around the world and roasts, seasons, and packages them for resale. Coronado's Nut House currently offers 23 different types of nuts in one-pound bags through catalogs and gourmet shops. The company's major cost is that of the raw nuts; however, the predominantly automated roasting and packing processes consume a substantial amount of manufacturing overhead cost. The company uses relatively little direct labor Question 1 Some of Coronado's nuts are very popular and sell in large volumes, but a few of the newer types sell in very low sales volumes. Coronado's prices its nuts at cost (including overhead) plus a markup of 40%. If the resulting prices of certain nuts are significantly higher than the market price, ad ustments are made. Although the company competes primarily on the quality of its products, customers are price conscious. Revlew Besulbs by Study Data for the annual budget include manufacturing overhead of $5,651,900, allocated on the basis of each product's direct labor cost. The annual budgeted direct labor cost totals $1,229,000. Based on the sales budget and raw materials standards, purchases and use of raw materials are expected to total $9,170,000 for the year The unit costs of a one-pound bag of two of the company's products follows. shews Chestnu $4.30 0.260.26 Raw materials $3.26 Direct labor Coronado's controller believes that the traditional costing system may be providing misleading cost information, so she has developed the following analysis of the annual budgeted manufacturing costs. Budgeted Budget Cost Cost Driver Activity 11,490$1,217,940 Number of setups1,7701,504,500 288,000 1,628,940 566,100 446,420 $5,651,900 Purchase orders Material handling Quality control Roasting Seasonin Packaging Number of batches Roasting hours Seasoning hours Packaging hours 600 95,820 33,300 26,260 Total manufacturing overhead cost Data regarding the annual production of cashews and chestnuts follow. All raw materials purchased during the period are processed and all nuts produced are sold within the period. Cashews Expected sales Batch size 118,900 lbs 10,000 lbs. 3,000 lbs. 1,000 lbs. vious Next MacBook Air