Cost Budget
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Assume that your team is going to form a company that will manufacture chocolate chip cookies. The team is responsible for preparing a list of all product components and costs necessary to make this product.
Required:
Prepare a list of all product components and costs necessary to manufacture your cookies and identify each of the product costs as direct materials, direct labor, or factory overhead. Identify each of these costs as variable, fixed, or mixed.
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The solution answers the question below regarding cost budget.
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The different product components and costs will be as follows (they have been broken down into logical subsections):
1) Flour - Direct Material, Variable
2) Oil - Direct Material, Variable
3) ...
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