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Breadman Bakeries Ltd produces three types of bread in the same factory: Sugar, Butter and
Wheat. The following is the cost data relating to the products: The three cost drivers that
generate overheads are: Deliveries to retailers - the number of deliveries of bread to retail outlets
Set-ups - the number of times the assembly line process is reset to accommodate a production
run of different types of bread Purchase orders - the number of purchase orders made The annual
cost driver volumes relating to each activity and for each type of product is as follows: The
annual overhead costs relating to these activities are as follows: You are required to calculate the
total profits on each of Breadman Bakeries Ltd three products using each of the following
methods to attribute overheads: a. Absorption costing technique b. Activity based costing
technique

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Breadman Bakeries Ltd produces three types of bread in the same facto.pdf

  • 1. Breadman Bakeries Ltd produces three types of bread in the same factory: Sugar, Butter and Wheat. The following is the cost data relating to the products: The three cost drivers that generate overheads are: Deliveries to retailers - the number of deliveries of bread to retail outlets Set-ups - the number of times the assembly line process is reset to accommodate a production run of different types of bread Purchase orders - the number of purchase orders made The annual cost driver volumes relating to each activity and for each type of product is as follows: The annual overhead costs relating to these activities are as follows: You are required to calculate the total profits on each of Breadman Bakeries Ltd three products using each of the following methods to attribute overheads: a. Absorption costing technique b. Activity based costing technique