Activity-based costing, product-cost cross-subsidization

"Baker 's Delight "Activity-based Costing Problem "Supporting Computation "2007 Cost - Simple Costing "Raisin Cake "Carrot Cake "Direct Materials "72000 "72000 "Direct Labor "16800 "16000 "Manufacturing Overhead "126480 "84320 "Total Cost "215280 "172320 "Total Sales "120000 "80000 "Cost Per Pound "1 .794 "2 .154 "Direct Materials "Total sales (pounds "120000 "80000 "DM cost /pound "0 .5781 "0 .1563 "Total DM "72000 "72000 "Direct Labor "120000 "80000 "Total sales (pounds "0 .3945 "0 .7891 "DL cost /pound "16800 "16000 "Total DL "Manufacturing Overhead "Total Budgeted OH "210800 "Divided by Total Budgeted sales "200000 "Budgeted OH per pound "1 .054 "Total sales (pounds

"120000 "80000 "OH cost /pound "1 .054 "1 .054 "Total OH "126480 "84320 "Baker 's Delight "Activity-based Costing Problem "Supporting Computation "2007 Cost - ABC "Raisin Cake "Carrot Cake "Direct Materials "72000 "72000 "Direct Labor "16800 "16000 "Manufacturing Overhead "70200 "344000 "Total Cost "159000 "432000 "Total Sales "120000 "80000 "Cost Per Unit "1 .325 "5 .4 "Direct Materials "Total sales (pounds "120000 "80000 "DM cost /pound "0 .5781 "0 .1563 "Total DM "72000 "72000 "Direct Labor "120000 "80000 "Total sales (pounds "0 .3945 "0 .7891 "DL cost /pound "16800 "16000 "Total DL "Manufacturing Overhead "Activity "Cost-Allocation Base "Budgeted Cost /CAB "Raisin Cake "Carrot Cake "Required CAB "Cost per activity "Required CAB "Cost per activity "Mixing "Labor-hours "0 .69727 "450000 "18000 "1280000 "51200 "Cooking "Oven-hours "0 .3945 "180000 "25200 "480000 "67200 "Cooling "Cool room-hours "0 .34863 "270000 "5400 "800000 "16000 "Creaming /Icing "Machine-hours "0 .25 "0 "0 "480000 "120000 "Packaging "Machine-hours "0 .39453 "270000 "21600 "1120000 "89600 "Total OH Cost "70200 "344000 "Cost Per Unit "0 .585 "4 .3 "Raisin Cake "Carrot Cake "Mixing "Total budgeted hours "600000 "640000 "Total budgeted sales "160000 "40000 "Multiplied by "3 .75 "16 "Total actual sales "120000 "80000 " Total Hours Required "450000 "1280000 "Cooking "Total budgeted hours "240000 "240000 "Total budgeted sales "160000 "40000 "Multiplied by "1 .5 "6 "Total actual sales "120000 "80000 " Total Hours Required "180000 "480000 "Cooling "Total budgeted hours "360000 "400000 "Total budgeted sales "160000 "40000 "Multiplied by "2 .25 "10 "Total actual sales "120000 "80000 " Total Hours Required "270000 "800000 "Creaming "Total budgeted hours "0 "240000 "Total budgeted sales "160000 "40000 "Multiplied by "0 "6 "Total actual sales "120000 "80000 " Total Hours Required "0 "480000 "Machine Hours "Total budgeted hours "360000 "560000 "Total budgeted sales "160000 "40000 "Multiplied by "2 .25 "14 "Total actual sales "120000 "80000 " Total Hours Required "270000 "1120000 "Raisin Cake "Simple Costing "ABC "Difference "1 .794 "1 .325 "0 .469 "Carrot Cake "Simple Costing "ABC "Difference "2 .154 "5 .4 "-3 .246...