Question

Assume that in a traditional costing system that all the indirect costs are allocated based on direct materials. Calculate the dollar amount of packaging costs that is allocated under the traditional costing system to the following cost objects 1) fresh bakery goods, 2) snack cakes, and 3) frozen bakery goods.

Answer 1

Answer:

The question is missing the direct and indirect costs, however I will let you know how to calculate.

The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.

The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.

Explanation:

The question is missing the direct and indirect costs, however I will let you know how to calculate.

The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.

The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.

Follow this for all the cost heads provided.