BM2209

Name: Abigail Blanco Section: BSBA 302 Date: October 27, 2022

ACTIVITY
Hot & Cold Cafe
The management of Hot & Cold Café wants to determine the unit cost associated with their 15,000 sales of
frappe for April 201A. The company's production process for their frappes is based on the orders they receive
on a particular day.
Variable expenses per cup of frappe Fixed expenses of Hot & Cold Café
Coffee granules P6.50 Labor P6,500
Milk 5.00 Rent 4,000
Water 0.01 Insurance 500
Crushed ice 2.00 Advertising 1,000
Chocolate syrup 4.00 Utilities 3,500
Total VC per unit P17.51 Total fixed cost P15,500

Requirements: (2 items x 10 points)

A. Compute the unit cost per cup of frappe.
SOLUTION:
Unit Cost = Total VC per unit + Total Fixed Cost
Total number of Sales

Unit Cost = P17.51+ 15,500

15,000

Unit Cost = P17.51+ 1.03

Unit Cost = P 18.54

B. Identify the features of unit costing present in the scenario and provide pieces of evidence or facts
from the given scenario which support each identified feature.

 The management of Hot & Cod Cafe specifically wishes to calculate the unit cost associated
with a given month, which is April 201A, and this feature only during a specific period,
therefore the average unit cost is the feature of unit costing that was offered in the scenario.
Hardwood Furniture
Hardwood Furniture completed single order job #501 on April 8, which runs for two (2) months. The job used
55 direct labor hours and 35 machine hours. The job consumed P2,500 worth of materials. The average direct
labor rate is P65.00 per hour, and the company uses the predetermined overhead rate of 7.25 per direct
labor hour.
Requirements: (4 items x 10 points)
1. Solve for the following:
a. Direct Labor
b. Applied Overhead
c. Total Cost of Job #501

SOLUTION:
A. DIRECT LABOR
Direct Labor = Rate X Activity
Direct Labor = 65 dlh X 55 dlh
Direct Labor = P 3,575.00

B. APPLIED OVERHEAD
Applied Overhead = Predetermined Overhead Rate X Activity
Applied Overhead = 7.25 dlh X 55 dlh
Applied Overhead = P 398.75

C. TOTAL COST OF JOB #501

Total Cost of Job = Direct Materials + Direct Labor + Applied Overhead
Total Cost of Job = 2,500 + 3,575 + 398.75
Total Cost of Job = P 6,473.75

2. Identify the features of job costing present in the scenario and provide pieces of evidence or facts
from the given scenario which support each identified feature.
 The characteristics of job costing that were highlighted in the example include assigning a
job number to each order, adding up costs with reference, and determining costs for each
order. Every order has a job number, and in the case when they finished work #501 from a
single order, you can see that they are providing job numbers. Second, the clients' phone
numbers are their references. Finally, each customer's receipts are used to calculate the
charges.
Rubric for problem-solving:
CRITERIA POINTS
Complete solution with the correct answer 10
The last two (2) major steps of the solution are incorrect 7
Half of the solution is correct 5
The first two (2) major steps of the solution are correct 3
The first major step of the solution is correct 1

Rubric for problem analysis:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting 8
details, and factual scenarios
Organization of Expressed the points in a clear and logical arrangement 2
ideas of ideas in the paragraph

TOTAL 10

05 Activity 3 *Property of STI

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