Fun Bakery has three shops in town Total Shop 1 Shop 2 Shop 3 Budgeted overhead € 40.000 € 10.000 € 25.000 Units produced 250 365 423 Per unit Direct materials € 25.000 € 35.000 € 14.000 Direct wages € 60.000 € 40.000 € 80.000 You are required to calculate for each department: a) The absorption rate per unit b) Cost per unit

Fun Bakery has three shops in town Total Shop 1 Shop 2 Shop 3 Budgeted overhead € 40.000 € 10.000 € 25.000 Units produced 250 365 423 Per unit Direct materials € 25.000 € 35.000 € 14.000 Direct wages € 60.000 € 40.000 € 80.000 You are required to calculate for each department: a) The absorption rate per unit b) Cost per unit

Name: Fun Bakery has three shops in town TotalShop 1Shop 2Shop 3Budgete
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Description: Fun Bakery has three shops in town TotalShop 1Shop 2Shop 3Budgeted overhead€ 40.000€ 10.000€ 25.000Units produced250365423 Per unit Direct materials€ 25.000€ 35.000€ 14.000Direct wages€

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...

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Fun Bakery has three shops in town Total Budgeted overhead Units produced Per unit Direct materials Direct wages You are required to calculate for each department: a) The absorption rate per unit b) Cost per unit Shop 1 € 250 € € Shop 2 40.000 € 365 25.000 € 60.000 € 10.000 Shop 3 € 423 35.000 € 40.000 € 25.000 14.000 80.000
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Fun Bakery has three shops in town

Total	Shop 1	Shop 2	Shop 3
Budgeted overhead	€ 40.000	€ 10.000	€ 25.000
Units produced	250	365	423

Per unit
Direct materials	€ 25.000	€ 35.000	€ 14.000
Direct wages	€ 60.000	€ 40.000	€ 80.000

You are required to calculate for each department:

a) The absorption rate per unit
b) Cost per unit