CVP with Activity-Based Costing Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is $1. Costs are as follows: Unit Variable Level of Cost Cost Driver Cost...


Busy-Bee Baking Company


CVP with Activity-Based Costing<br>Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is $1. Costs are as follows:<br>Unit Variable<br>Level of Cost<br>Cost Driver<br>Cost<br>Driver<br>Units sold<br>$0.65<br>Setups<br>$296<br>155<br>Maintenance hours<br>$12<br>2,440<br>Other data:<br>Total fixed costs (traditional)<br>$141,365<br>Total fixed costs (ABC)<br>66,205<br>Required:<br>1. Compute the break-even point in units using conventional analysis.<br>units<br>2. Compute the break-even point in units using activity-based analysis.<br>units<br>3. Suppose that Busy-Bee could reduce the setup cost by $100 per setup and could reduce the number of maintenance hours needed to 1,050. How<br>many units must be sold to break even in this case? Round your answer up to the next higher whole unit (for example, 50.3 units rounds to 51).<br>units<br>

Extracted text: CVP with Activity-Based Costing Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is $1. Costs are as follows: Unit Variable Level of Cost Cost Driver Cost Driver Units sold $0.65 Setups $296 155 Maintenance hours $12 2,440 Other data: Total fixed costs (traditional) $141,365 Total fixed costs (ABC) 66,205 Required: 1. Compute the break-even point in units using conventional analysis. units 2. Compute the break-even point in units using activity-based analysis. units 3. Suppose that Busy-Bee could reduce the setup cost by $100 per setup and could reduce the number of maintenance hours needed to 1,050. How many units must be sold to break even in this case? Round your answer up to the next higher whole unit (for example, 50.3 units rounds to 51). units

Jun 11, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here