Professional Documents
Culture Documents
Student Name
Bravo Baking Company began operations in May of 2010 with the production and sales of specialty
The company has experienced a good market demand for its high protein, low carbohydrate product
Hi-Lo's success has required that Bravo continue to make only this one product, however, Bravo's c
the local retailers, have been asking for more specialty breads from the company. The decision to e
in the coming weeks.
ACCT 346
Student Name
For Tables A : From the list below, identify if the cost item is a
"Product Cost" or "Period Cost" by typing "Product" or "Period" in the
appropriate box.
10 points
Table A
Flour used in baking bread
Factory Supervisor Salaries
Bakers wages
Rent for Executive Offices
Sales Commissions
Utilities used in the factory
Advertising costs
Delivery truck costs
Paper wrappers for bread
Depreciation on bake ovens
Eggs, salt, water used for baking
Interest on bank loan
Factory Insurance
For Table B: From the list below, identify if the cost item is a "Direct Cost"
or "Indirect Cost" by typing "Direct" or "Indirect" in the appropriate box.
Table B
Points
0.00
ACCT 346
Student Name
Use the information provided below to prepare the Cost of Good Manufactured Schedule:Bravo had the following costs as of
Green shaded cells.
Table C
Materials used in baking bread
Bakers wages
Rent for Executive Offices
Sales Commissions
Utilities used in the factory
Advertising costs
Delivery truck costs
Depreciation on bake ovens
Interest on bank loan
Beginning Inventory Materials
Beginning Work in Process
Ending Inventory Materials
Inventory Purchases
Ending Work in Process
Other Overhead costs
Beginning Finished Goods Inventory
Ending Finished Goods Inventory
Rent for Factory
$32,000
36,000
10000
5000
12000
25000
500
250
10,000
8000
4000
26000
2500
1200
7500
6000
7500
Materials Used
Direct Labor
Overhead
Factory Rent
Depreciation on bake ovens
Utilities used in Factory
Other Overhead costs
Total Overhead
Total Manufacturing Costs
Total Work in Process
Less: Ending Work in Process
Cost of Goods Manufactured
actured Schedule:Bravo had the following costs as of Dec 31, 2010. Enter the correct values in the
30 points
Cost of Goods Manufactured Schedule
Beginning Work In Process
Materials
Beginning Inventory Materials
Plus: Purchases
Materials Available
Less: Ending Inventory Materials
Materials Used
Direct Labor
Overhead
Factory Rent
Depreciation on bake ovens
Utilities used in Factory
Other Overhead costs
Total Overhead
Total Manufacturing Costs
Total Work in Process
Less: Ending Work in Process
Cost of Goods Manufactured
Complete only the Green cells. Values in Red are from the schedule above.
Cost of Goods Sold Schedule
Beginning Finished Goods Inventory
Beginning Work In Process
$0
Materials
Beginning Inventory Materials
$0
Plus: Purchases
$0
Materials Available
$0
Less: Ending Inventory Materials
$0
Materials Used
$0
Direct Labor
$0
Overhead
Factory Rent
$0
Depreciation on bake ovens
$0
Utilities used in Factory
$0
Other Overhead costs
$0
Total Overhead
$0
Total Manufacturing Costs
$0
Total Work in Process
$0
Less: Ending Work in Process
$0
Cost of Goods Manufactured
$0
Try Again
Try Again
Try Again
Try Again
Try Again
Try Again
Try Again
Try Again
Try Again
Try Again
Try Again
Try Again
Try Again
Points
ACCT 346
Student Name
Bravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs. (TCO
Units produced
14,000
Table A
Materials used in baking bread
Sales Commissions
Bakers wages
Rent for Executive Offices
Factory Supervisor Salaries
Utilities used in the factory
Advertising costs
Delivery truck depreciation
Depreciation on bake ovens
Interest on bank loan
Variable Fixed
2.29
0.12
2.29
3,000
3500
0.50
1000
400
0.07
500
Total Costs
$5.27
$7.77
$8,400.00
40 Points
Part I Enter your solution in the green cells for each of the following:
Using the costs from Table A compute
A) Breakeven units (rounded to 2 decimal places)
B) Break-even sales dollars
C) Contribution Margin
D) Contribution Margin Ratio (enter as % for example 51% or decimal .51)
Part II Complete the following requirements
A) If Bravo requires a profit of $5,000 how many units must it sell?
B) What is the total revenue from A above?
C) If Bravo actually sells 8,000 units (Hint: Use Break Even $ from B Above)
1) What is the margin of safety in Dollars?
2) What is the margin of safety percentage?
Total Correct
Points
ACCT 346
Student Name
Bravo Baking Co has expanded its product line to include several other specialty breads. The operating results for the last qua
Product
Revenues
Variable product costs
Variable Selling & Administrative costs
Hi-Lo
Whole Grain Fruit & Nuts Total
$67,575
$31,800
$15,900 $115,275
$27,030
$12,720
$6,360 $46,110
$13,515
$6,360
$3,180 $23,055
Contribution Margin
Fixed Product Costs
Fixed Selling and Administrative Costs
Allocated Common Costs
$27,030
$5,000
$5,700
$5,000
$12,720
$5,000
$2,850
$2,500
$6,360
$5,000
$2,850
$2,500
$46,110
$15,000
$11,400
$10,000
Net Income
$11,330
$2,370
($3,990)
$9,710
Required:
Bravo wants to know the effect on Net Income if it decides to discontinue the Fruit & Nuts product.
If Bravo eliminates Fruit & Nuts 50% of fixed costs can be avoided.
Prepare and incremental analysis showing the Net Income Effect of eliminating the Fruit & Nuts product.
What would you advise Bravo to do?
Using the Table below, compute the Net Income for Bravo Baking after eliminating the Fruit & Nuts product.
Product
Hi-Lo
Whole Grain Fruit & Nuts Total
Revenues
$0 Try Again
Variable product costs
$0 Try Again
Variable Selling & Administrative costs
$0 Try Again
Contribution Margin
Fixed Product Costs
Fixed Selling and Administrative Costs
Allocated Common Costs
$0
$0
$0
$0
Net Income
$0 Try Again
Points
Based on your analysis, what recommendation would you make about Fruit & Nuts? Explain.
Try Again
Try Again
Try Again
Try Again
0
uts product.
(TCO 7)
40 Points
ACCT 346
Student Name
Bravo Baking Co is considering replacing an older freezer with a larger unit to freeze some of its bread.
The new unit has a larger capacity and Bravo estimates it can produce and sell more bread each year. From these add
the annual after-tax cash flow is expected to be $4,000. In addition to more sales, the new freezer will save $1,200 in
However, the new freezer will cost an additional $2,000 each year for maintenance. The cost of the new unit is $25,0
expected to last 10 years. The salvage value at the end of its life is $6,000. The old unit is fully depreciated and can
Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. Should Bravo
Use the format below to complete the NPV computations:
Note: Use PV Tables found in the PV tabs in the workbook. Be sure to enter 4 decimal places. Also, be sure to show
Cash Flow
PV
Factors
PV Amounts
Points
0.00
TCO 9
40 Points
ACCT 346
Student Name
Bravo Baking uses standard costing to analyze its performance. The data below is provided for your use in determining Bravo
Amount/Unit
Standard Cost per unit
Cost /Unit
Standard Cost
Material Cost (Ingredients) (.5 lbs)
2.29
.5 lbs
$4.58
Direct Labor( .25 hrs * $9/hr)
2.25
.25 hrs
$9.00
Overhead
0.57
Total
5.11
During the month, Bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients. Also during the month, Bravo
purchased 5,000 pounds of ingredients at a cost of $22,500. Employees worked a total of 2200 hours and actual labor costs w
Required:
Part a . Compute the material price and quantity variance.
Material Price Variance =
=
Fav/Unf >
=
Material Quantity Variance =
=
Fav/Unf
=
Labor Rate Variance =
=
Fav/Unf >
=
Labor Efficiency Variance =
=
=
Fav/Unf
TCO 10
40 Points
Points
6.00%
0.9434
0.8900
0.8396
0.7921
0.7473
0.7050
0.6651
0.6274
0.5919
0.5584
0.5268
0.4970
0.4688
0.4423
0.4173
0.3936
0.3714
0.3503
0.3305
0.3118
0.2942
0.2775
0.2618
0.2470
0.2330
0.2198
0.2074
0.1956
0.1846
0.1741
0.1643
0.1550
0.1462
0.1379
7.00%
0.9346
0.8734
0.8163
0.7629
0.7130
0.6663
0.6227
0.5820
0.5439
0.5083
0.4751
0.4440
0.4150
0.3878
0.3624
0.3387
0.3166
0.2959
0.2765
0.2584
0.2415
0.2257
0.2109
0.1971
0.1842
0.1722
0.1609
0.1504
0.1406
0.1314
0.1228
0.1147
0.1072
0.1002
8.00%
0.9259
0.8573
0.7938
0.7350
0.6806
0.6302
0.5835
0.5403
0.5002
0.4632
0.4289
0.3971
0.3677
0.3405
0.3152
0.2919
0.2703
0.2502
0.2317
0.2145
0.1987
0.1839
0.1703
0.1577
0.1460
0.1352
0.1252
0.1159
0.1073
0.0994
0.0920
0.0852
0.0789
0.0730
9.00%
0.9174
0.8417
0.7722
0.7084
0.6499
0.5963
0.5470
0.5019
0.4604
0.4224
0.3875
0.3555
0.3262
0.2992
0.2745
0.2519
0.2311
0.2120
0.1945
0.1784
0.1637
0.1502
0.1378
0.1264
0.1160
0.1064
0.0976
0.0895
0.0822
0.0754
0.0691
0.0634
0.0582
0.0534
10.00%
0.9091
0.8264
0.7513
0.6830
0.6209
0.5645
0.5132
0.4665
0.4241
0.3855
0.3505
0.3186
0.2897
0.2633
0.2394
0.2176
0.1978
0.1799
0.1635
0.1486
0.1351
0.1228
0.1117
0.1015
0.0923
0.0839
0.0763
0.0693
0.0630
0.0573
0.0521
0.0474
0.0431
0.0391
11.00%
0.9009
0.8116
0.7312
0.6587
0.5935
0.5346
0.4817
0.4339
0.3909
0.3522
0.3173
0.2858
0.2575
0.2320
0.2090
0.1883
0.1696
0.1528
0.1377
0.1240
0.1117
0.1007
0.0907
0.0817
0.0736
0.0663
0.0597
0.0538
0.0485
0.0437
0.0394
0.0355
0.0319
0.0288
12.00%
0.8929
0.7972
0.7118
0.6355
0.5674
0.5066
0.4523
0.4039
0.3606
0.3220
0.2875
0.2567
0.2292
0.2046
0.1827
0.1631
0.1456
0.1300
0.1161
0.1037
0.0926
0.0826
0.0738
0.0659
0.0588
0.0525
0.0469
0.0419
0.0374
0.0334
0.0298
0.0266
0.0238
0.0212
13.00%
0.8850
0.7831
0.6931
0.6133
0.5428
0.4803
0.4251
0.3762
0.3329
0.2946
0.2607
0.2307
0.2042
0.1807
0.1599
0.1415
0.1252
0.1108
0.0981
0.0868
0.0768
0.0680
0.0601
0.0532
0.0471
0.0417
0.0369
0.0326
0.0289
0.0256
0.0226
0.0200
0.0177
0.0157
14.00%
0.8772
0.7695
0.6750
0.5921
0.5194
0.4556
0.3996
0.3506
0.3075
0.2697
0.2366
0.2076
0.1821
0.1597
0.1401
0.1229
0.1078
0.0946
0.0829
0.0728
0.0638
0.0560
0.0491
0.0431
0.0378
0.0331
0.0291
0.0255
0.0224
0.0196
0.0172
0.0151
0.0132
0.0116
15.00%
0.8696
0.7561
0.6575
0.5718
0.4972
0.4323
0.3759
0.3269
0.2843
0.2472
0.2149
0.1869
0.1625
0.1413
0.1229
0.1069
0.0929
0.0808
0.0703
0.0611
0.0531
0.0462
0.0402
0.0349
0.0304
0.0264
0.0230
0.0200
0.0174
0.0151
0.0131
0.0114
0.0099
0.0086
Start Rate
1.00%
Rate
1.00%
6.00%
0.9434
1.8334
2.6730
3.4651
4.2124
4.9173
5.5824
6.2098
6.8017
7.3601
7.8869
8.3838
8.8527
9.2950
9.7122
10.1059
10.4773
10.8276
11.1581
11.4699
7.00%
0.9346
1.8080
2.6243
3.3872
4.1002
4.7665
5.3893
5.9713
6.5152
7.0236
7.4987
7.9427
8.3577
8.7455
9.1079
9.4466
9.7632
10.0591
10.3356
10.5940
8.00%
0.9259
1.7833
2.5771
3.3121
3.9927
4.6229
5.2064
5.7466
6.2469
6.7101
7.1390
7.5361
7.9038
8.2442
8.5595
8.8514
9.1216
9.3719
9.6036
9.8181
9.00%
0.9174
1.7591
2.5313
3.2397
3.8897
4.4859
5.0330
5.5348
5.9952
6.4177
6.8052
7.1607
7.4869
7.7862
8.0607
8.3126
8.5436
8.7556
8.9501
9.1285
10.00%
0.9091
1.7355
2.4869
3.1699
3.7908
4.3553
4.8684
5.3349
5.7590
6.1446
6.4951
6.8137
7.1034
7.3667
7.6061
7.8237
8.0216
8.2014
8.3649
8.5136
11.00%
0.9009
1.7125
2.4437
3.1024
3.6959
4.2305
4.7122
5.1461
5.5370
5.8892
6.2065
6.4924
6.7499
6.9819
7.1909
7.3792
7.5488
7.7016
7.8393
7.9633
12.00%
0.8929
1.6901
2.4018
3.0373
3.6048
4.1114
4.5638
4.9676
5.3282
5.6502
5.9377
6.1944
6.4235
6.6282
6.8109
6.9740
7.1196
7.2497
7.3658
7.4694
13.00%
0.8850
1.6681
2.3612
2.9745
3.5172
3.9975
4.4226
4.7988
5.1317
5.4262
5.6869
5.9176
6.1218
6.3025
6.4624
6.6039
6.7291
6.8399
6.9380
7.0248
14.00%
0.8772
1.6467
2.3216
2.9137
3.4331
3.8887
4.2883
4.6389
4.9464
5.2161
5.4527
5.6603
5.8424
6.0021
6.1422
6.2651
6.3729
6.4674
6.5504
6.6231
15.00%
0.8696
1.6257
2.2832
2.8550
3.3522
3.7845
4.1604
4.4873
4.7716
5.0188
5.2337
5.4206
5.5831
5.7245
5.8474
5.9542
6.0472
6.1280
6.1982
6.2593