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.
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
