Question: Your Tasks: There are two parts to this analysis. First, you will classify the costs that you have identified at Muesli AG. In the second

 Your Tasks: There are two parts to this analysis. First, you
will classify the costs that you have identified at Muesli AG. In
the second step, you will examine how those costs relate and come

Your Tasks: There are two parts to this analysis. First, you will classify the costs that you have identified at Muesli AG. In the second step, you will examine how those costs relate and come together to determine total costs at the company. Part 1 Classify each of these costs into the following categories: 1) fixed or variable in relation to production of boxes of muesli, 2) product or period costs, and 3) direct or indirect product costs. Note that only product costs will be classified as either direct or indirect. Using the Excel spreadsheet supplied to you to indicate your classification. You only need to enter an X in the cell to indicate your choice. An example is shown below. Special note: It is very important as you determine whether a cost is variable or fixed that you answer the question - "Variable or fixed in relationship to what?" In our case, we are looking for costs that are variable or fixed in relation to production of boxes of muesli. If we were looking at some other activity, our answers might be different. For instance, if we asked about whether the costs were variable or fixed in relationship to transporting the goods, our answers could be entirely different. Part 2 Assume that there are 20 work days in a month. Assume that we make only one flavor and size of muesli cereal to answer the following questions. 1. If we manufacture 100,000 boxes of cereal this month: a. What will be the total fixed costs? b. What will be the total fixed period costs? c. What will be the total fixed product costs? d. What will be the variable cost per box of muesli? e. What will be the total variable costs? f. What will be the total product costs? g. What will be the total cost for one box of muesli? 2. If we manufacture 240,000 boxes of cereal this month: a. What will be the total fixed costs? b. What will be the total fixed period costs? c. What will be the total fixed product costs? d. What will be the variable cost per box of muesli? e. What will be the total variable costs? f. What will be the total product costs? g. What will be the total cost for one box of muesli? 3. If we manufacture 500,000 boxes of cereal this month: a. What will be the total fixed costs? b. What will be the total fixed period costs? c. What will be the total fixed product costs? d. What will be the variable cost per box of muesli? The following is a list of the costs that you have identified. All amounts are in Euros. administrative salaries 22,000.00 per month advertising 4,000.00 per month assembly line supervisor 6,000.00 per month bags for packaging 0.09 per 500g box blueberries 1.23 per 500g box boxes for packaging 0.21 per 500g box consultants for the manufacturing process 50,000.00 per consultation, 1 consultation per year depreciation - factory building 5,000.00 per month depreciation - equipment 200,000.00 per month direct labor 80,000.00 per month factory maintenance 35,000.00 per month interest (A rating) 60,000 per month licenses and taxes 36,000.00 per year ( 3,000 per month) maintenance on office equipment 2,000.00 per month nuts 0.90 per 500g box oats 0.48 per 500g box office supplies 1,000.00 per month production equipment maintenance 15,000.00 per month raisins 0.79 per 500g box research and development 12,000.00 per month sales salaries 40,000.00 per month security for the factory 4,000.00 per month storage capacity finished goods ( FG)500.00 per day ( 20 days per month) storage capacity raw materials (RM) 1,000.00 per day ( 20 days per month) strawberries 1.23 per 500g box transportation to distribution center 1,000.00 per transport ( 20 days per month) whelat 0.52 per 500g box

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!