Question: Problem 6-12 (Part Level Submission) The Marx Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of
Problem 6-12 (Part Level Submission) The Marx Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many other types of bakery items. It h relate to its strawberry cheesecake and the ABC cost pools: as recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data Strawberry Cheesecake Annual production 19,200 units $10 $2 Direct materials per unit Direct labor per unit Cost Pool Materials ordering Materials inspection Equipment setup Quality control Other Total manufacturing overhead Cost Driver Number of purchase orders Cost $76,680 73,800 Number of receiving reports 90,300Number of setups 67,080Number of inspections 74,800 Direct labor cost $382,660 Annual activity information related to cost drivers: Strawberry Cheesecake 110 Cost Pool All Products Materials ordering Materials inspection Equipment setup Quality control Other 8,520 orders 360 receiving report 2,580 setups 2,580 inspections 180 $38,400 $1,870,000 direct labor
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