Uno Dos Unit sales $13.00 $31.00 Less varlable cost: Direct material $ 7.00 $ 5.00 Direct labor 1.00 6.00 Variable overhead 1.25 7.50 Variable selling and administrative cost .75 .50 Total variable cost $10.00 $19.00 Unit contribution margin $ 3.00 $12.00

Please choose a company which produces more than one product. Take at least two of these products and discuss the different costs between these two products which may make one more profitable than the other.

Chocolate Bars, Inc. (CBI), manufactures creamy deluxe chocolate candy bars. The firm has developed three distinct products: Almond Dream, Krispy Krackle, and Creamy Crunch.   CBI is profitable, but management is quite concerned about the profitability of each product and the product costing methods currently employed. In particular, management questions whether the overhead allocation base of direct labor-hours accurately reflects the costs incurred during the production process of each product.   In reviewing cost reports with the marketing manager, Steve Hoffman, who is the cost accountant, notices that Creamy Crunch appears exceptionally profitable and that Almond Dream appears to be produced at a loss. This surprises both him and the manager, and after much discussion, they are convinced that the cost accounting system is at fault and that Almond Dream is performing very well at the current market price.   Steve decides to hire Jean Sharpe, a management consultant, to study the…

RelyaTech Corporation manufactures a number of products at its highly automated factory. The products are very popular, with demand far exceeding the factory's capacity. To maximize profit, management should rank products based on their selling price gross margin contribution margin per unit of the constrained resource contribution margin

The JAG Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. JAG Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. The following are data from the most recent periods: Cost Hours $25,000 5,025 25,100 4,000 34,000 7,515 60,370 15,500 38,000 9.500 Required: (a) Using the high-low method, estimate the cost function. Round to two decimal places. Show work to receive partial credit!! (b) Calculate the estimated total costs at an operating level of 6,000 hours. Show work to receive partial credit!!!

Hansaben

Chocolate Bars, Inc. (CBI), manufactures creamy deluxe chocolate candy bars. The firm has developed three distinct products: Almond Dream, Krispy Krackle, and Creamy Crunch. CBI is profitable, but management is quite concerned about the profitability of each product and the product costing methods currently employed. In particular, management questions whether the overhead allocation base of direct labor-hours accurately reflects the costs incurred during the production process of each product. Skipped In reviewing cost reports with the marketing manager, Steve Hoffman, who is the cost accountant, notices that Creamy Crunch appears exceptionally profitable and that Almond Dream appears to be produced at a loss. This surprises both him and the manager, and after much discussion, they are convinced that the cost accounting system is at fault and that Almond Dream is performing very well at the current market price. Steve decides to hire Jean Sharpe, a management consultant, to study the…

Smokey Jack's BBQ makes only one product-BBQ sauce. However, they have several different flavors of BBQ sauces. How would Smokey Jack's cost accounting differ if they used a process cost system compared to a job-order cost system? O Under a process cost system, product-related costs would be allocated to products based on each batch or flavor of BBQ sauce that was made. Under a job-order cost system, product-related costs would be allocated to products based on how many units of BBQ sauce were made in a one-month period, regardless of flavor. O Under a process cost system, product-related costs would be traced from raw materials to finished product for each individual unit. Under a job-order cost system, product-related costs would be allocated to products based on how many units of BBQ sauce were made in a one-month period, regardless of flavor. O Under a process cost system, product-related costs would be allocated to products based on how many units of BBQ sauce were made in a…

Aqua Company produces two products–Alpha and Beta. Alpha has a high market share and is produced in bulk. Production of Beta is based on customer orders and is custom designed. Also, 55% of Beta's cost is shared between design and setup costs, while Alpha's major portions of costs are direct costs. Alpha is using a single cost pool to allocate indirect costs. Which of the following statements is true of Aqua? Question 6 options: Aqua will overcost Alpha's indirect costs as it is using a single cost pool to allocate indirect costs Aqua will overcost Beta's indirect costs because beta has high indirect costs Aqua will undercost Alpha's indirect costs because alpha has high direct costs. Aqua will overcost Beta's direct costs as it is using a single cost pool to allocate indirect costs