The head of the party service Ypsilon KG would like to produce special luxury cakes exactly matched
Question:
The head of the party service Ypsilon KG would like to produce special luxury cakes exactly matched to the customer's wishes offering two types, i.e. a wedding cake (type A) and a birthday cake (type B). Due to the very different degree of complexity associated with the two types, the controller wants to implement a process-oriented calculation in addition to the cost accounting previously applied. For the next period, the production of 300 wedding cakes and 900 birthday cakes are planned. The material costs are planned to be 10 units per wedding cake and 6 units per birthday cake. he following overheads are assumed:
Cost Center | Processes and planned Quantities | Overheads | ||
Directly involved in activity- | Not involved in activity | Involved in activity- | Not directly involved in activity | |
Material (Sourcing Processes) | 780 | department management | 7.800 | 780 |
Party-service(Demand Analysis Processes) | 1.140 | department management | 38.760 | 17.100 |
Kitchen (Working hors) | 660 | department management | 15.180 | 13.200 |
Distribution (Delivery process) | 1.200 | department management | 16.800 | 3.600 |
Totals | 78.540 | 34.680 |
In addition, there are administrative overheads amounting to a total of € 10.122, which should be added to the production costs. For the production of 20 pieces the following necessary processes are assumed:
A | B | |
Sourcing Processes | 28 | 8 |
Demand Analysis Processes | 34 | 14 |
Working hours in the kitchen | 26 | 6 |
Delivery Processes | 20 | 20 |
Assignments:
• Calculate the manufacturing costs on a per piece basis and in total, for the wedding cake (A) and the birthday cake (B) applying a classical overhead calculation (based on full cost accounting). Basis for the accounting of material- and manufacturing overheads is the costs directly attributable to the production overheads; the administration and distribution costs are based on the manufacturing costs.
• Calculate the manufacturing costs on a per piece basis and in total for the wedding cake (A) and the birthday cake (B) using a process-oriented calculation.
Essentials of Materials Science and Engineering
ISBN: 978-1111576851
3rd edition
Authors: Donald R. Askeland, Wendelin J. Wright