Managerial Accounting: MBA309

Group Case/Group 2

Hervias,Mark Matthew C.

Taglucop, Susana

Oliveres, Aizel Mae

Tan, Edgelyn Grace

Villaruz, Kristin Nicle

Date Submitted: March 27, 2021

JAVA Source, Inc

1.) a. Predetermined overhead rare =Estimated overhead cost=$2,200,000.00 = $44.00

b. Kenya Dark Viet Select

Direct Materials

Direct Labor 4.5 2.9

Manufacturing overhead 0.24 0.24

Unit product cost 0.88 0.88

5.62 4.02

*Manufacturing overhead = $44.00 /DLH x .02 hrs per bag $.088

2. Activity cost pool Expected cost for the year/Expected Activity for the year =
(Predeterminedoverhead rate) expected overheast cost/activity

Purchasing 560,000.00 2,000 orders 280 per order

Material handling 193,000.00 1,000 set ups 193 per set up

Quality control 90,000.00 500 batches 180 per batch

Group Case/Group 2

Hervias,Mark Matthew C.

Taglucop, Susana

Oliveres, Aizel Mae

Tan, Edgelyn Grace

Villaruz, Kristin Nicle

Date Submitted: March 27, 2021

Roasting 1,045,000.00 95,000 roasting hrs 11 per rosting hrs

Packaging 120,000.00 24,000 packaging hours 5 per packaging hrs

KENYA DARK

Activity Expected activity

Batch size 16 batches (80,000 pounds/5,000 pounds)

Set ups 32 batches (2 set ups x 16 batches)

Purchase order size 4 orders (80,000 pounds/20,000 pounds)

Roasting time per 100 pounds 1,200 Roasting hour (1.5 roasting hour x 80,000 pounds/100)

Blending time per 100 pounds 400 Blending hour (0.5 bleanding hour x 80,000 pounds/100)

Packaging time per 100 pounds 240 packaging time (0.3 packaging time x 80,000 pounds/100)

VIET SELECT

Activity Expected activity

Group Case/Group 2

Hervias,Mark Matthew C.

Taglucop, Susana

Oliveres, Aizel Mae

Tan, Edgelyn Grace

Villaruz, Kristin Nicle

Date Submitted: March 27, 2021

Batch size 8 batches (4,000 pounds/500 pounds)

Set ups 16 set ups (2 set ups x 8 batches)

Purchase order size 8 orders (4,000 pounds/500 pounds)

Roasting time per 100 pounds 60 roasting hour (1.5 roasting hour x 4,000
pounds/100)

Blending time per 100 pounds 20 blending hour (0.5 bleanding

Packaging time per 100 pounds 12 packaging hour (0.3 packaging time x
4,000 pounds/100)

a. KENYA DARK

Activity cost pool Expected activity x expected cost/activity=Overhead cost assigned

Purchasing 4 orders $ 280/order $1,120.00

Material Handling 32 set ups 193./set up 6,176.00

Quality control 16 batches 180/batch 2,880.00

Group Case/Group 2

Hervias,Mark Matthew C.

Taglucop, Susana

Oliveres, Aizel Mae

Tan, Edgelyn Grace

Villaruz, Kristin Nicle

Date Submitted: March 27, 2021

Roasting 1,200 roasting hour 11/roasting hour 13,200.00

Blending 400 blending hour 6/blending hour 2,400.00

Packaging 240 packaging hour 5 roasting hour 1,200.00

Total overhead assigned $26,976.00

VIET SELECT

Activity cost pool Expected activity x expected cost/activity = Overhead cost assigned

Purchasing 8 orders $ 280/order $2,240.00

Material Handling 16 set ups 193./set up 3,088.00

Quality control 8 batches 180/batch 1,440.00

Roasting 60 roasting hour 11/roasting hour 660.00

Blending 20 blending hour 6/blending hour 120.00

Packaging 12 packaging hour 5 roasting hour 60.00

Total overhead assigned $7,608.00

Group Case/Group 2

Hervias,Mark Matthew C.

Taglucop, Susana

Oliveres, Aizel Mae

Tan, Edgelyn Grace

Villaruz, Kristin Nicle

Date Submitted: March 27, 2021

b. Kenya Dark

Total overhead assigned / expected sales = Manufacturing overhead per pound

$26,976.00/80,000 pounds =$ 0.34/pound

Viet Select $ 7,608.00/4,000 pounds=$ 1.90/pound

c. Kenya dar Viet Select

Direct Materials $4.50 $2.90

Direct labor 0.24 0.24

Manufacturing overhead 0.34 1.90

Unit product cost $5.08 $5.04