This 18 page paper answers 4 questions on costing for Readytaste Meals Ltd, calculating the different costs for each meal and each quarter fore the year, looks at whether part orders should be tae and the scheduling, projects the financial plan for the next year and undertakes a variance analysis.
Name of Research Paper File: TS14_TEcost02.rtf
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four product ranges. In calculating the operating statement we need to make use of the information given. We first need to calculate the variable costs for each meal. We are
told the number of sales, in total and that there will have been an equal spread of all the meals. This will give us the following. This is a simple
calculation, taking the number of meals sold and dividing it by 4 (as this is the number of product types sold. This gives us the following, which we will use
to help with allocating the costs. These are as follows Table 1 Meal A Meal S&M Meal S Meal T Raw ingredients (a) 79 90 80 86 Packaging (b)
20 20 20 20 Total variable costs (a+b) 99 110 100 106 Next we can look at the number of meals sold each quarter and work out the total
variable costs for each quarter the hours are calculated as follows Table 2 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter total No of Sales (of 100 meal boxes)
(a) 684 700 552 704 2640 No of each product type (a/4) 171 175 138 176 660 Now we have the number of each meal each quarter we can multiple
the number of meals by the variable costs for each quarter and give us a total variable cost. Here we take the variable cost and multiply it by the number
sold, which is shown in brackets after the quarter. Table 3 variable cost quarter 1 (171) quarter 2 (175) quarter 3 (138) quarter 4 (176) Meal A
99 16929 17325 13662 17424 Meal S&M 110 18810 19250 15180 19360 Meal S 100 17100 17500 13800 17600 Meal T 106 18126 18550 14628 18656 Total cost
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