California Creamery Essay

500 words - 2 pages

Case 18-2: California Creamery* [1: * This teaching note was written by Kenneth A. Merchant.]Note: This case is new for the Twelfth Edition.Purpose of CaseThis case provides a simple setting that illustrates activity-based cost (ABC) principles and the effects that such a system can have. It can be used as an exam case when the examination period is short. Students who understand ABC principles well can read the case and answer a basic set of questions in one hour.Suggested Assignment QuestionsCompute the full production cost (per gallon) of the Polynesian Fantasy and Vanilla products using:Will's old costing method;The new costing method (Louise's suggestion).What are the effects, if any, of changing the company's costing method? Specifically, are the differences between the two costing methods material in terms of:their effect on individual product costs?their effect on total company profits? (Assume no changes in any operating decisions, such as prices and production volumes.)If there are material differences, why do they exist? If there are no material differences, why do they not exist?What should Will do now? Explain.Question 1Under the old system, the only difference shown between the costs of Polynesian Fantasy and Vanilla ice creams was due to the $.20 difference in direct material costs (see Table 1). The overhead rate was 200% of direct labor dollars ($600,000 ÷ $300,000).Table 1Old System Costs

Polynesian Fantasy










1.20 * 200%


1.20 * 200%



The new system costs took some calculating. Table 2 shows the calculation of the cost driver rates. Table 3 uses these rates to calculate the product costs. The total costs for Polynesian Fantasy and Vanilla are $9.07 and $4.64 respectively.Table 2New System-Calculate cost drivers

Budgeted Cost

Activity cost driver

Budgeted activity

Cost driver



Purchase orders



Material handling






Find Another Essay On California Creamery

Integration of Social Media, Ethics, and Privacy Policies In the Employment Process

3030 words - 12 pages against the school’s gay history exhibit on her Facebook, and was suspended. White 9 • In 2012, a female worker from California commented that President Obama should be “assassinated,” along with some racial slurs. She was terminated from her job at Cold Stone Creamery. • A Boston banker lied about his time off from work, stating he was absent due to a family emergency. Through Facebook, his employer found that he was very well and in good health

When the Bubble Burst Essay

1539 words - 6 pages By the time I arrived state side from my second tour in the Middle East the housing bubble had already burst. I noticed a drastic change in the way that many of my friends and family were living. Several of my friends that worked in real estate had sold their boats and seconds houses. My own stock portfolio had lost a third of its value. My sister and her husband had defaulted on their home mortgage leaving them scrambling for a place to live. I

phase diagram

4456 words - 18 pages Introduction: Chemical equilibrium is a crucial topic in Chemistry. To represent and model equilibrium, the thermodynamic concept of Free energy is usually used. For a multi-component system the Gibbs free energy is a function of Pressure, Temperature and quantity (mass, moles) of each component. If one of these parameters is changed, a state change to a more energetically favorable state will occur. This state has the lowest free energy

Revolutionary Work of Art

1890 words - 8 pages Walter Benjamin emphasizes in his essay, “The Work of Art in the Age of its Technological Reproducibility” that technology used to make an artwork has changed the way it was received, and its “aura”. Aura represents the originality and authenticity of a work of art that has not been reproduced. The Sistine Chapel in the Vatican is an example of a work that has been and truly a beacon of art. It has brought a benefit and enlightenment to the art

Enlightenment Thought in New Zealand Schools

1594 words - 6 pages In this essay I will be looking at how the political and intellectual ideas of the enlightenment have shaped New Zealand Education. I will also be discussing the perennial tension of local control versus central control of education, and how this has been affected by the political and intellectual ideas of the enlightenment. The enlightenment was an intellectual movement, which beginnings of were marked by the Glorious Revolution in Britain

Psychological Egoism Theory

2240 words - 9 pages ambiguous on some issues. References Hinman, L. M. (2007). Ethics a Plurastic Approach, 4th edition. New York: Wadsworth Publishing Company. Hugh, L. (1988). The Truth in Psychological Egoism: Reason and Responsibility. New York : Wadsworth. Michael, S. (1978). Empirical Basis for Psychological Egoism Brainstorms. California: Bradford. p72-3. John, R. (1971). The Circumstances of Justice: Egoism in Context. Cambridge, MA: Harvard University Press. Smith, C.M. (1898). Psychological and Political Ethics. New York: Hafner Press. Feinberg, J. (1998). Psychological Egoism in Ethics: History, Theory, and Contemporary Issues. Oxford: Oxford University Press.

How Celtic Folkore has Influenced My Family

1587 words - 6 pages Every family has a unique background that influences the way they live and interact with other people. My parents, who emigrated from Ireland to the States with my three brothers in 1989, brought over their own Celtic folklore and traditions that have helped shaped the way our family operates and lives. One aspect of folklore that has helped shape my family dynamic is the Celtic cross—both its background and what role it has played in our lives

Julia Margaret Cameron

1406 words - 6 pages At a time when women were looked upon as being homemakers, wives, mothers and such the late 1850's presented a change in pace for one woman in specific. Photography was discovered in 1826 and soon after the phenomenon of photography was being experimented with and in turn brought new and different ways of photo taking not only as documenting real time, but also conceptualizing a scene in which an image would be taken. Julia Margaret Cameron will

Evaluation of School Improvement

1403 words - 6 pages The evaluation process should be progressive to incorporate overall planning, implement changes, which contribute to success. In order to focus on school climate and norms, the evaluation design must include the students, instructions, and outcomes to improve communication and building-level concerns to be address in this response. School Climate and Social Norms The school principal, other staff leaders, and personnel set the tone and the

Case Study: The Benefits of Animal Testing

1757 words - 7 pages Nine year old Amy has already had a rough start in life. She was born with an abnormal heart that hinders her everyday activities. Amy is unable to keep up with kids her own age because she often tires out easily. As a consequence, she has very little friends and is often alone. Amy is forced to take different medications everyday just to survive. Amy’s life consists of medicine, doctors, and constant hospital visits. However, Amy is due for a

Myth and Magic: Realism in "One Hundred Years of Solitude"

1531 words - 6 pages “He enjoyed his grandmother's unique way of telling stories. No matter how fantastic or improbable her statements, she always delivered them as if they were the irrefutable truth” (Wikipedia, 2011). Experiences are particular instances of one personally encountering or undergoing something and in these moments of time life changes for the best or the worst and memories are formed. These recollections such as riding your first bicycle, going to

Similar Essays

Google Is Working To Save The Planet

622 words - 3 pages . The mode of transportation they strongly encourage is cycling.  Eating: Sourcing food responsibly , Googlers enjoy a variety of healthy, seasonal and flavorful food for free. For instance, in Northern California they have partnership with a range of suppliers and farms . They purchase organic dairy from Straus Family Creamery in Marshall. They partner with small local farms, like Pie ranch and Alba Organics who educate aspiring farmers

Dwight D. Eisenhower Essay

1276 words - 5 pages Dwight David Eisenhower was born in Denison, Texas, on October 14, 1890. His father was David Jacob Eisenhower from Elizabethville, Pennsylvania. He was a creamery mechanic, storekeeper, manager of a gas company, and a director of employee savings for group public utilities. Dwight’s mother was Ida Elizabeth Stover from Mount Sidney, Virginia. Both parents were descended from German and Swiss immigrants who had come to Pennsylvania in the

Robert Lucas Essay

1406 words - 6 pages Robert Lucas was born in Yakima, Washington on September 15, 1937. He was the oldest child of his father, Robert Emerson Lucas and his mother, Jane Templeton Lucas. He had a sister named Jenepher who was born in 1939 and a brother named Peter who was born in 1940. His parents moved from Seattle to Yakima to open a small ice cream shop which they named The Lucas Ice Creamery. The restaurant eventually fell in about 1938. The family moved back to

Biography Of Dwight David Eisenhower Essay

4603 words - 18 pages job at a small railroad there. Back in Abilene, a new creamery plant was built and an old friend of Mr. Eisenhower asked him to move back and work for him. It did not pay much more than his job in Texas, but the chance of advancement was better. In the spring of 1891, the Eisenhower family boarded a train and left for Kansas. They lived in a small house in Kansas on South East Second Street where Mrs. Eisenhower gave birth to three more sons. The