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    05 Activity 3

    Uploaded by

    GTABORADA,JOVELITA S.
    This document provides information about two different costing scenarios - unit costing for Hot & Cold Cafe's frappe production and job costing for Hardwood Furniture's job #501. For Hot & Cold Cafe, it calculates the unit cost per cup of frappe to be P18.54 by taking the total variable cost per unit of P17.51 and adding the proportion of fixed overhead costs allocated based on the total sales. For Hardwood Furniture, it calculates the direct labor of P3,575, applied overhead of P398.75, and total cost of P6,473.75 for job #501 by using the direct labor hours, predetermined overhead rate, and other costs like materials

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    05 Activity 3

    Uploaded by

    GTABORADA,JOVELITA S.
    104 views2 pages
    This document provides information about two different costing scenarios - unit costing for Hot & Cold Cafe's frappe production and job costing for Hardwood Furniture's job #501. For Hot & Cold Cafe, it calculates the unit cost per cup of frappe to be P18.54 by taking the total variable cost per unit of P17.51 and adding the proportion of fixed overhead costs allocated based on the total sales. For Hardwood Furniture, it calculates the direct labor of P3,575, applied overhead of P398.75, and total cost of P6,473.75 for job #501 by using the direct labor hours, predetermined overhead rate, and other costs like materials

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    05_Activity_3(4)

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    This document provides information about two different costing scenarios - unit costing for Hot & Cold Cafe's frappe production and job costing for Hardwood Furniture's job #501. For Hot & Cold Cafe, it calculates the unit cost per cup of frappe to be P18.54 by taking the total variable cost per unit of P17.51 and adding the proportion of fixed overhead costs allocated based on the total sales. For Hardwood Furniture, it calculates the direct labor of P3,575, applied overhead of P398.75, and total cost of P6,473.75 for job #501 by using the direct labor hours, predetermined overhead rate, and other costs like materials

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    104 views2 pages

    05 Activity 3

    Uploaded by

    GTABORADA,JOVELITA S.
    This document provides information about two different costing scenarios - unit costing for Hot & Cold Cafe's frappe production and job costing for Hardwood Furniture's job #501. For Hot & Cold Cafe, it calculates the unit cost per cup of frappe to be P18.54 by taking the total variable cost per unit of P17.51 and adding the proportion of fixed overhead costs allocated based on the total sales. For Hardwood Furniture, it calculates the direct labor of P3,575, applied overhead of P398.75, and total cost of P6,473.75 for job #501 by using the direct labor hours, predetermined overhead rate, and other costs like materials

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    BM2209

    Name: JOVELITA S. TABORADA Section: BSBA OM 2O1B Date: 10-26-22

    ACTIVITY
    Hot & Cold Cafe
    The management of Hot & Cold Café wants to determine the unit cost associated with their 15,000 sales of
    frappe for April 201A. The company's production process for their frappes is based on the orders they receive
    on a particular day.
    Variable expenses per cup of frappe Fixed expenses of Hot & Cold Café
    Coffee granules P6.50 Labor P6,500
    Milk 5.00 Rent 4,000
    Water 0.01 Insurance 500
    Crushed ice 2.00 Advertising 1,000
    Chocolate syrup 4.00 Utilities 3,500
    Total VC per unit P17.51 Total fixed cost P15,500
    Requirements: (2 items x 10 points)
    A. Compute the unit cost per cup of frappe.
    B. Identify the features of unit costing present in the scenario and provide pieces of evidence or facts
    from the given scenario which support each identified feature.

    Hot & Cold Café

    Unit cost

    15,500
    VC = 17.5 + 15,000

    = 17.51 + 1.03
    = 18.54

    b. This scenario wants to determine the unit cost and the features that present in scenario is average unit cost
    because the average unit cost is about determined by dividing the whole production cost by the total number
    of units produced. In other words, it calculates how much money is required for each unit of production
    produced by the company. Your average unit cost is changed whenever you get a purchase order. Like in
    the scenario we can identify the total fixed cost because it given which is 15,500 and also the Variable cost
    per unit its 17.51 and then we compute the unit cost per cup of frappe by dividing the total fixed cost and
    given sales of frappe for April 201A then add it into variable cost per unit the equals of our addition of
    answer in divided total fixed cost and sales of frappe for April is the answer.

    Hardwood Furniture
    Hardwood Furniture completed single order job #501 on April 8, which runs for two (2) months. The job used
    55 direct labor hours and 35 machine hours. The job consumed P2,500 worth of materials. The average direct
    labor rate is P65.00 per hour, and the company uses the predetermined overhead rate of 7.25 per direct
    labor hour.
    Requirements: (4 items x 10 points)
    1. Solve for the following:
    a. Direct Labor
    b. Applied Overhead
    c. Total Cost of Job #501
    2. Identify the features of job costing present in the scenario and provide pieces of evidence or facts
    from the given scenario which support each identified feature.
    Hardwood Furniture

    a. Direct Labor = rate x activity


    = 65 x 55
    = 3,575
    b. Applied Overhead = predetermined overhead rate x activity
    = 7.25 x 55
    = 398.75
    c. Total cost of Job #501
    = 3,575+398.75+2,500
    = 6473.75
    2.The scenario that’s show in this activity identify are the cost determined for each order and
    identifying a job at each stage of its manufacturing process is possible. According to the information
    under "Hardwood Furniture Company," each component's cost and how it is produced, together with
    the appropriate categories where it falls, are clearly described, along with the company's products.

    05 Activity 3 *Property of STI


    Page 1 of 1

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