es Located in a small town in upstate New York, Terry's Bakery operates a facility that makes pies for retail sale. The facility has the capacity to make 40,200 pies annually. The plant has only two customers, Panama Food Mart and East Street Coffee. Annual orders for Panama total 20,100 pies, and annual orders for East Street total 10,050 pies. Terry's makes the pies fresh every day and carries no inventory. It also ensure that the customers only sell freshly made pies as well. Variable manufacturing costs are $4.55 per pie, and annual fixed manufacturing costs are $108,540. Required: What cost per pie should the cost system report? Note: Round your answers to 2 decimal places. Cost per pie at capacity Cost per pie at demand

es Located in a small town in upstate New York, Terry's Bakery operates a facility that makes pies for retail sale. The facility has the capacity to make 40,200 pies annually. The plant has only two customers, Panama Food Mart and East Street Coffee. Annual orders for Panama total 20,100 pies, and annual orders for East Street total 10,050 pies. Terry's makes the pies fresh every day and carries no inventory. It also ensure that the customers only sell freshly made pies as well. Variable manufacturing costs are $4.55 per pie, and annual fixed manufacturing costs are $108,540. Required: What cost per pie should the cost system report? Note: Round your answers to 2 decimal places. Cost per pie at capacity Cost per pie at demand

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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