Delightful Desserts manufactures gluten-free desserts, including their three most popular items: Cheesecake, Brownies, and Cherry Pie. Their controller, Jennifer, has been compiling data for their yearly budget planning strategy meeting and the recommendation will be to continue using a traditional costing system as they have since inception. Delightful Desserts assigns their Manufacturing Overhead (MOH) costs based on 89% of their Direct Labor (DL) costs. Jennifer has gathered the following cost information to assist budget makers with the appropriate cost allocations for each dessert type:
(If required, round calculations to two decimal places.)
a. What are the total product costs for each of the three desserts?
b. What is the total cost per unit for each of the three desserts?
c. Are there any additional recommendations that Jennifer could make to management about the evaluation of their manufacturing overhead cost allocations?

Question

Delightful Desserts manufactures gluten-free desserts, including their three most popular items: Cheesecake, Brownies, and Cherry Pie. Their controller, Jennifer, has been compiling data for their yearly budget planning strategy meeting and the recommendation will be to continue using a traditional costing system as they have since inception. Delightful Desserts assigns their Manufacturing Overhead (MOH) costs based on 89% of their Direct Labor (DL) costs. Jennifer has gathered the following cost information to assist budget makers with the appropriate cost allocations for each dessert type:
  (If required, round calculations to two decimal places.)
a. What are the total product costs for each of the three desserts?
b. What is the total cost per unit for each of the three desserts?
c. Are there any additional recommendations that Jennifer could make to management about the evaluation of their manufacturing overhead cost allocations?

Quizplus · Accepted Answer

The Answer of Delightful Desserts manufactures gluten-free desserts, including their three most popular items: Cheesecake, Brownies, and Cherry Pie. Their controller, Jennifer, has been compiling data for their yearly budget planning strategy meeting and the recommendation will be to continue using a traditional costing system as they have since inception. Delightful Desserts assigns their Manufacturing Overhead (MOH) costs based on 89% of their Direct Labor (DL) costs. Jennifer has gathered the following cost information to assist budget makers with the appropriate cost allocations for each dessert type:
  (If required, round calculations to two decimal places.)
a. What are the total product costs for each of the three desserts?
b. What is the total cost per unit for each of the three desserts?
c. Are there any additional recommendations that Jennifer could make to management about the evaluation of their manufacturing overhead cost allocations?

Delightful Desserts Manufactures Gluten-Free Desserts, Including Their Three Most Popular