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BAE

Direct material cost per cake is 50 cents

Assume that monthly electricity costs (based on the cheapest electricity provider) and production levels from Part 1 are given as past data. Complete this table and answer required questions using the following assumptions:

ï‚· Direct material cost per cake is 50 cents.

ï‚· Each cake requires 9 minutes labor work and the labor rate is $20 per hour.

ï‚· Use the total number of cakes as the cost driver.

ï‚· The relevant range is between 6,500 and 9,800 cakes.

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