Sour Factory (Sour) has been manufacturing Lemon Biscuit and Lemon Zest Cookies. The tables below provide...

 

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Sour Factory ("Sour") has been manufacturing Lemon Biscuit and Lemon Zest Cookies. The tables below provide the information for the production in October 2016: Items Ingredients (flour, butter, sugar, milk) Production workers salary Utilities expense Rental of Factory $ 25,000 12,000 5,000 10,000 Other information: Items Lemon Biscuits Lemon Zest Cookies Total Pieces baked 30,000 pieces 20,000 pieces Baking time in the oven 320 hours 200 hours 50,000 pieces 520 hours 60% 40% Space used in factory 100% Every piece of pastry requires the same type and amount of ingredients. The time spent by production workers to bake each piece of pastry is also the same. The utilities expense is incurred largely due to the consumption of electricity by the oven. Company uses Activity Based Costing. Q9) Calculate the direct cost of producing all the Lemon Biscuits. Show your workings clearly. Sour Factory ("Sour") has been manufacturing Lemon Biscuit and Lemon Zest Cookies. The tables below provide the information for the production in October 2016: Items Ingredients (flour, butter, sugar, milk) Production workers salary Utilities expense Rental of Factory $ 25,000 12,000 5,000 10,000 Other information: Items Lemon Biscuits Lemon Zest Cookies Total Pieces baked 30,000 pieces 20,000 pieces Baking time in the oven 320 hours 200 hours 50,000 pieces 520 hours 60% 40% Space used in factory 100% Every piece of pastry requires the same type and amount of ingredients. The time spent by production workers to bake each piece of pastry is also the same. The utilities expense is incurred largely due to the consumption of electricity by the oven. Company uses Activity Based Costing. Q9) Calculate the direct cost of producing all the Lemon Biscuits. Show your workings clearly.