The local bakery has decided they want to produce a new product to sell to customers....

 

  
 

Transcribed Image Text:

The local bakery has decided they want to produce a new product to sell to customers. The bakery utilizes job order costing, and a job cost sheet will be used to summarize all costs. The bakery uses direct labor hours as the allocation base to apply manufacturing overhead to a job. The bakery estimates $50,000 in total manufacturing overhead costs and estimates 10,000 total direct labor hours in the year. Project Requirements: 1. Develop and complete a job cost sheet. 2. Choose any bakery product to produce, find or create a recipe, and determine job (batch) size. 3. Break down and list all ingredients, research cost of ingredients, and calculate total direct material cost. 4. Determine production tasks (i.e., mixer, baker, quality control, etc.), assign each production task an hourly wage, and calculate total direct labor cost. 5. From the information provided in the project summary, calculate the bakery wide predetermined overhead rate for manufacturing overhead using direct labor hours as the allocation base. 6. Apply manufacturing overhead to the job. 7. Calculate total job cost. 8. Calculate unit product cost. Product: Job (batch) size: Direct Materials Cost per unit of measurement EXAMPLE: Sugar $1.00 per lb Ingredient Quantity Needed 2 lbs Job Cost Sheet Example S Amount: $2.00 Task Direct Labor Hours Rate Amount Manufacturing Overhead S Amount Hours: Rate Direct Materials Direct Labor Manufacturing Overhead Total Job Cost Unit Product Cost Cost Summary The local bakery has decided they want to produce a new product to sell to customers. The bakery utilizes job order costing, and a job cost sheet will be used to summarize all costs. The bakery uses direct labor hours as the allocation base to apply manufacturing overhead to a job. The bakery estimates $50,000 in total manufacturing overhead costs and estimates 10,000 total direct labor hours in the year. Project Requirements: 1. Develop and complete a job cost sheet. 2. Choose any bakery product to produce, find or create a recipe, and determine job (batch) size. 3. Break down and list all ingredients, research cost of ingredients, and calculate total direct material cost. 4. Determine production tasks (i.e., mixer, baker, quality control, etc.), assign each production task an hourly wage, and calculate total direct labor cost. 5. From the information provided in the project summary, calculate the bakery wide predetermined overhead rate for manufacturing overhead using direct labor hours as the allocation base. 6. Apply manufacturing overhead to the job. 7. Calculate total job cost. 8. Calculate unit product cost. Product: Job (batch) size: Direct Materials Cost per unit of measurement EXAMPLE: Sugar $1.00 per lb Ingredient Quantity Needed 2 lbs Job Cost Sheet Example S Amount: $2.00 Task Direct Labor Hours Rate Amount Manufacturing Overhead S Amount Hours: Rate Direct Materials Direct Labor Manufacturing Overhead Total Job Cost Unit Product Cost Cost Summary