Managerial Accounting

Premium price Chocolate vanilla extract Chocolate vanilla extract pitiful toll Product 2 Chocolate and Vanilla guileless spicy Volume Strawberry and Mochaalmond Complex Low Volume 3 Now: Complicated Before: Simple - Changeovers - repeal the vats - Clean - Produce other flavours - Sterilization (mocha-almond) however purchase and scheduling activities require more time 4 Before: Profit Now: Margins Decrease disrespect wise products are supposedly more profitable. Continue to construct building complex products? YES NO 5 Direct cost = £2106.9 Cost vestige Traditional cost System Indirect Costs=£1800 Cost allocations ABC System 6 ? Profitability c off-keyee vanilla extract 2.250 750 300 900 1.950 300 13,3% STRAWBERRY 418,5 140,4 54 162 356,4 62,1 14,8% MOCHAALMOND 49,5 16,5 6 18 40,5 9 18,2% impart 4.518 1.506,9 600 1.800 3.906,9 611,1 13,5% SALES MATERIAL cost 1.800 600 240 720 1.

560 240 13,3% project labour party operating cost AT 300% TOTAL COSTS avail GROSS MARGIN (%) 7 OVERHEAD COSTS cost CATEGORY INDIRECT mash thrill BENEFITS COMPUTER SYSTEMS MACHINERY criminal maintenance qualification TOTAL write off (000) £600 £480 £300 £240 £120 £60 £1,800 40 % of Direct experience over upon Costs 40 % x 600 = 240 + 40 % of Indirect scraunch Costs 40 % x 600 = 240 OVERHEAD COSTS outlay CATEGORY INDIRECT tug FRINGE BENEFITS COMPUTER SYSTEMS MACHINERY MAINTENANCE ENERGY TOTAL expense (000) £600 £480 £300 £240 £120 £60 £1,800 40 % of Dir ect agitate Costs 40 % x 600 = 240 + 40! % of Indirect churn Costs 40 % x 600 = 240 OVERHEAD COSTS EXPENSE CATEGORY INDIRECT labor movement FRINGE BENEFITS COMPUTER SYSTEMS MACHINERY MAINTENANCE ENERGY TOTAL EXPENSE (000) £600 £480 £300 £240 £120 £60 £1,800 40 % of Direct take Costs 40 % x 600 = 240 + 40 % of Indirect grind upon Costs 40 % x 600 = 240 Direct Labour Costs OVERHEAD COSTS EXPENSE CATEGORY INDIRECT drudge COMPUTER SYSTEMS MACHINERY MAINTENANCE ENERGY TOTAL EXPENSE (000)...If you fate to get a broad essay, order it on our website: BestEssayCheap.com

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