nts Project 1 Assignment-(Case study located in Module 2) Humble Pies are asking several firms to provide a proposal recommending what type of costing approach will help them determine more accurate cost information for Humble Pie's Bakery' pricing and product decisions. You can enter your answers in Word or Excel or on paper and upload here. First read the case study and then answer the following questions: ine Tu- 1. Of the expenses listed in Table 1, determine which should be treated as product costs and which should be treated as period costs for management decision making? (10 points) 2. For each product cost you identified, how would you track the cost? For example, would you track it by individual job, batch, production step, activity, general factory overhead, et? (5 points) 3. Assume Beginning Work in Process Inventory is 7000. Raw Materials added are 2000. Labor for this period is 5500. MOH for this period is 1500 and the ending inventory is 6000. Calculate and Determine the COGM. (10 points) 4. Assume Beginning FGI is 1285. Ending FGI is 920. Work in Process has been derived from the previous question. Calculate and Determine the COGS. (10 points) 5. Of the expenses listed in Table 1, determine which costs are direct and which are indirect? (10 points) 4. Assume Beginning FGI is 1285. Ending FGI is 920. Work in Process has been derived from the previous question. Calculate and Determine the COGS. (10 points) 5. Of the expenses listed in Table 1, determine which costs are direct and which are indirect? (10 points) 5a. Calculate the Contribution Margin, Contribution Margin and Contribution Margin Ratio. (20 points) 6. Is Humble Pies making a Profit? Why and How? (15 points) 7. In your judgement, how and in what areas could Humble Pies decrease costs? Minimum of 200 words proving your point. (20 points) View Go Tools Window Help D Humble Pies Case Study.pdf (page 4 of 5) Table 1: Selected Financial Data (actual cost and revenue data for May 2014) Cost Category Behavior May 2014 Sales $766,667 Expenses: Raw Materials Variable $327,934 Bakery labor Mixed $158,767 Administration Salaries Fixed $41,367 Supplies Variable $3,833 Freight & Shipping.In Variable $4,907 Freight & Shipping-Out Variable $64,707 Utilities - Electricity Variable $9,813 Utilities - Gas (ovens) Variable $3,067 Water Variable $920 Repairs & Maintenance Fixed $4,293 Rent expense Fixed $19,167 Telephone & Internet Fixed $2,300 Co-owners' salary Fixed $25,300 Brokers' commissions Variable $30,667 Total Expenses $697,042 Operating Profit $69,625 Income Tax $22.280 Net operating income $47,345 Unit volume Average Operating Assets Minimum Rate of Return 64,500 $5,500,000 8.00% 13 CH BO 9 COD DIL F8 $ & 59 F5 57 FI F2 %