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Basic Multi-Layer Custom Direct Material Costs per wedding cake type $20 $35 $50...

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Accounting

Basic Multi-Layer Custom
Direct Material Costs per wedding cake type $20 $35 $50
Direct Labor Hours per wedding cake type 3 hours 5 hours 7 hours
Number of cakes expected to be produced by wedding cake type 1500 1700 1000
Direct Labor Costs per hour per wedding cake type $50/hour $50/hour $50/hour
  1. Using job-order costing, compute the product cost for each product. Show all calculations and clearly label your answer.

  1. Basic Wedding Cake

  1. Multi-layer Wedding Cake

3. Custom Wedding Cake

f. Anticipate any business problems that may result from allocating the manufacturing overhead based only on the direct labor hours used to produce the wedding cakes.

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