1a)

Plant Wide Allocation $116,750 7,500 Hours $15.57 per DLH

Total Overhead Cost Direct Labour Hours Manufacting Overhead

Product Cost Estimate Rebel Ale (Expected Yield = 22 Cases) Direct Materials Direct Labour Overhead Cost Total Cost per Batch Total Cost per Bottle

$62.60 $108.00 $280.26 18*15.57 $450.86 $0.85

Corinthian Bock (Expected Yield = 16 cases) Direct Materials Direct Labour Overhead Cost Total Cost per Batch Total Cost per Bottle

1b) ABC Computation of Activity Rates Activity Cost Pools Maintenance & Sterlisation Mixing & Cooking Chilling & Siphoning Equipment Depreciation Quality Control Bottling and Labelling Storage Shipping Cost per Batch Rebel Ale Fermenation Days 3 Direct Labour Hours 18 Machine Hours 110 Number of Order 2 Number of QC Inspections 5 Number of Bottles Per Batch 528

Total Cost Total Activity Activity Rate $30,000 2910 Days $10.31 $8,000 2910 Days $2.75 $7,500 7500 Hours $1.00 $5,500 82700 Hours $0.07 $10,500 4850 Inspections $2.16 $21,000 229920 Bottles $0.09 $3,000 229920 Bottles $0.01 $31,250 3,740 Orders $8.36 Corinthian Bock 14 12 325 18 22 384 Shiloh Stout 4 13 135 9 8 432

Product Cost Estimate Rebel Ale (Expected Yield = 22 Cases) Direct Cost: Direct Material Direct Labour Shipping Maintenance & Sterlisation Mixing & Cooking Chilling & Siphoning Equipment Depreciation Quality Control Bottling and Labelling Storage Total Cost Cost per Bottle

$62.60 $108.00 $16.71 $30.93 $8.25 $18.00 $7.32 $10.82 $48.23 $6.89 $317.74 $0.60

Corinthian Bock (Expected Yie Direct Cost: Direct Material Direct Labour Shipping Maintenance & Sterlisation Mixing & Cooking Chilling & Siphoning Equipment Depreciation Quality Control Bottling and Labelling Storage Total Cost Cost per Bottle

3) Net Income (Plant-wide allocation) Ale Sales $141,225 Cost of Goods Sold $112,200 Gross Margin $29,025 S&A NOI Bock $58,320 $41,932.80 $16,387 Stout $72,576 $44,582.40 $27,994

Total Sales 250 Batches of Ales@528 Bottles per Batch 120 Batches of Bock@384 Bottles per Batch 120 Batches of Stout@432 Bottles per Batch Total Sales

$1.05*250*528 $1.50*120*384 $1.40*120*432

$138,600 $69,120 $72,576 $280,296

Cost of Goods Sold 250 Batches of Ales@528 Bottles per Batch 120 Batches of Bock@384 Bottles per Batch 120 Batches of Stout@432 Bottles per Batch Total Cost of Good Sold

$0.85*250*528 $0.91*120*384 $0.86*120*432

$112,200 $41,932.80 $44,582.40 $198,715

Net Income (ABC) Ale Sales Costs: Total Cost Product Margin S&A NOI $138,600 $79,200.00 $59,400.00 Bock $69,120 $73,728.00 ($4,608.00) Stout $72,576 $45,619.20 $26,956.80

$0.43

(Expected Yield = 16 cases) $88.95 $72.00 $186.84 12*15.57 $347.79 $0.91

Shiloh Stout( Expected Yield = 18 cases) Direct Materials Direct Labour Overhead Cost Total Cost per Batch Total Cost per Bottle

$89.55 $78.00 $202.41 $369.96 $0.86

Days Days Hours Hours Inspections Bottles Bottles Orders

orinthian Bock (Expected Yield = 16 cases) $88.95 $72.00 $150.40 $144.33 $38.49 $12.00 $21.61 $47.63 $35.07 $5.01 $615.50 $1.60

rect Material rect Labour

aintenance & Sterlisation ixing & Cooking hilling & Siphoning quipment Depreciation uality Control ottling and Labelling

ost per Bottle

Shiloh Stout( Expected Yield = 18 cases) Direct Cost: Direct Material Direct Labour Shipping Maintenance & Sterlisation Mixing & Cooking Chilling & Siphoning Equipment Depreciation Quality Control Bottling and Labelling Storage Total Cost Cost per Bottle

Total $280,296 $198,715 $81,581 Constant

Total $280,296 $198,547.20 $81,748.80 Constant

13*15.57

pected Yield = 18 cases) $89.55 $78.00 $75.20 $41.24 $11.00 $13.00 $8.98 $17.32 $39.46 $5.64 $379.38 $0.88

Sterlisation