Part 11. CREAM CHEESE COOKIES 1cream cheese are types of cookies which are made using the following methods, working in it until the cream cheese is blended, you put sugar and cream to make sure it is smooth, then add egg plus vanilla, add some amount of flour to blend well. Put the mixture in a cookie shooter, give the baking machine the instructions on shapes of your preference, bake for about 10 or 15 minutes, and make the number of dozens that you desire. INGREDIENTS: 1c. Crisco 1(3oz. )cheese 1c. sugar 1eggyolk 1/2tsp. yolk 1/2tsp. vanilla 2 1/2 c.
sifted flourCOST OF RAWMATERIALSDIRECT MATERIALS Unit cost1 cup (3 oz) cream cheese $ 1.321 cup sugar $ 0.151 egg yolk $ 0.102 ½ cup shifted flour $ 0.375TOTAL $ 1.945MANUFACTURING OVERHEADS Variable costs Fixed costs (Per dozen) (Per month)Utilities $ 0.50Other indirect materials and labor $ 0.75Maintenance $ 500Depreciation $2000Supervision $ 2500TOTAL $ 1.25 $5000OPERATING EXPENSES Variable costs Fixed costs (Per dozen) (Per month)Sales commission $ 0.40Shipping costs $ 1.10Salaries $ 1000Depreciation $ 300Other $ 2700TOTAL $ 1.50 $ 4000(a) Total variable costs for a dozen of cookies=4.25+1.50=5.75(b).
mark up on variable costs = 120% * 5.75 =6.90©. Contribution margin for a dozen cookie =total sales- variable costs=6.90-5.75=1.15(d) Break-even point=variable costs+ fixed costs+ o= (5.75+21000+o)*3EXPENSES1.Rawmaterials = $ 1.9452. Manufacturing overheads =variable costs=$4.25 fixed costs=$50003. Operating expenses=variable costs 1.50 fixed costs 4000Part 13 (a) Operating expenses in another name is period costs. They include expenses incurred at the time of selling, general and expenses incurred in running the business, interest and tax expenses3(b) VARIABLE COSTSUtilities-you cannot determine how much you are going to spend on utilities, you always expect changesOther indirect materials and labor-are variable costs because they depend on units of productsSales commissions-are variable costs because they can increase or decrease concerning number of salesShipping costs-usually depend with the number of productsFIXED COSTSMaintenance-machines, buildings and other things that require maintenance always have a fixed cost Depreciation-will always remain constant whether you produce one product or a thousand productsSupervision-if supervisors are there they are paid a fixed amount of money whether there is production or not Part 2 2(a) In doing business, the process is very complex and it does require many efforts for it to be successful, in business managers are aware that to coordinate a business is a challenge; the vital coordinating effort is to have a master budget, which acts as the financial plan for the whole organization, important coordination is important. The beginning of a master budget is looking at the expected sales through a sales budget.
The sales you expect controls the plans of production and selling and other forms of budget such as, administrative and general budget. Production brings requirements for labor and materials.
Factory overheads can be used using labor but revolves around comprehensive production. All processes in budgeting mostly start with the sales budget. Sales budget actually shows estimated sales volume, its outcomes caused by past sales patterns, present and designated economic conditions an so on. if the budget is to be of importance, collections, timing of cash must be carefully considered. Walther, L. (2010). Principles of accounts. Ney York