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    products using a) Will’s old costing method; b) The new costing method. 1  1a) Based on Will’s old costing method (Volume Based Costing): • California Creamery has a budgeted manufacturing overhead of $600‚000 and a budgeted direct labour cost of $300‚000 • Overhead rate per direct labour cost => $600‚000/$300‚000 = $2 From Exhibit 2 CALIFORNIA CREAMERYINC. Two Product Examples (2004 Data) Polynesian Fantasy • Direct labour $1.20/gallon Overhead assigned to: Vanilla $1.20/gallon  Polynesian

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    California Creamery

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    Natalie Simmermon ACC 503 California CreameryInc. (Activity-Based Costing) 1. What is the cost of the two products under traditional costing? Under traditional accounting the costs for each flavor were intuitively wrong. The cost to produce a gallon of Polynesian was $5.60‚ only 20 cents more than Vanilla comparatively. One would assume that an exotic flavor would have a significantly higher cost proportionally. 2. What is the cost of the two products under activity-based costing

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    Boston Creamery Solution

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    Case Name: Boston CreameryInc. Short Cycle Process: Who: Frank Roberts‚ VP Sales & Marketing‚ Boston CreameryInc. When: December 31‚ 1973 Where: Case facts not given Issues: 1. The current variance analysis used for the 1973 fiscal years shows an overall favorable net variance of $71‚700. This is an aggregate net figure based upon the favorable variance due to sales and the unfavorable variance due to operations. This net variance figure fails to highlight areas of deficiency to help identify

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    System Study of New Zealand CreameryInc. In Partial Fulfillment Of the Requirements for the Course COMS331P – Practicum Submitted to Ms. Roda N. Sanares Faculty‚ Computer Studies Department De La Salle University – Dasmariñas College of Science Dasmariñas‚ Cavite Vernon Edward E. Guintu BCS32 6/1/2012 1. Company Background a. History of the Company The company started out in 1958 as a joint venture with New Zealand Dairy Board. Under this

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    Boston Creamery Case

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    MEMO Date:   October 20‚ 2014 To:   Mr. Jim Peterson‚ President‚ Boston CreameryInc.‚ Ice Cream Division From: Subject:   Evaluating the decision choices of Boston Creamery to improve budgeting Introduction Boston Creamery is currently experiencing difficulties with regards to its budgeting process and variance analysis. For the fiscal year 1973‚ the Ice Cream Division has a favorable operating income variance of $71‚700.  The President‚ Jim Peterson feels that the comparisons between budgeted

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    Cool Moose Creamery Case Study Situational Analysis: External Analysis Competition: The competition for Cool Moose Creamery consists of the popular Dairy Queen ice cream parlor. Dairy Queen was made popular for their soft-serve ice cream and backs up that product with multiple other ice cream products along with lunch and dinner options. The company focuses on customer service and their pricing model is higher than industry. The quality of their product and service has allowed then to keep their

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    Boston Creamery Case

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    Drury‚ Management and Cost Accounting – Boston Creamery Boston Creamery Professor John Shank‚ The Amos Tuck School of Business Administration Dartmouth College This case is reprinted from Cases in Cost Management‚ Shank‚ J. K. 1996‚ South Western Publishing Company. The case was prepared by Professor John Shank from an earlier version he wrote at Harvard Business School with the assistance of William J. Rauwerdink‚ Research Assistant. This case deals with the design and use of formal "profit

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    Boston Creamery

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    EXECUTIVE SUMMARY Boston CreameryInc‚ is an ice cream company that manufactures and distributes ice cream to wholesalers and retailers. In 1973‚ the company had installed a new financial planning and control system that compares budgeted results against actual results and be able to highlight things that needed corrective actions or commend things that resulted in a favorable overall variance. This year‚ the division has a favorable operating income variance of $71‚700. Highlights: · Jim

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    California Tax Case Study

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    Case Study Mining Data To Increase State Tax Revenues in California 1. What are the benefits of using the new INC system? -identification of nearly 100‚000 non-filers -an additional net review of $36 million per year -uses Unique identifier to synchronize the direct and indirect indicators -elimination of 55‚000 incorrect actions sent by the Bureau -saving HR the hassle of addressing erroneous notices     -increased functionality and capacity 2. Why didn’t the California Franchise

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    interested in going through the whole variance analysis process. They can highlight areas which are to be addressed urgently. As per the case‚ they only wish to see the items that need their concern so that action can be taken the next year‚ 1974. Boston Creamery must increase advertisements of their products to address the increase in market size. Boston CreameryInc. lost 1.0% market share – from 50% to only 49%‚ despite the favorable increase in market size variance of $ 167‚610.00 (See Exhibit 2)

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