Sugar Sweet, Inc. ANTONELLA ESPOSTO EMI GJINI MONIKA MACKOWIAK JENNA PALANTI Company Letter Sugar Sweet, Inc. was established in January 2008 by the current company officers. The No. 1 feature is the company’s famous sugar cookies, which is offered in 3 varieties: plain, sprinkles, and frosting & sprinkles. The company continues to provide award winning sugar cookies to the Chicagoland area. Our Vision: Our Mission: Our mission is to provide our customers with exceptionally scrumptious cookies. We pledge to properly make use of our time, size, and resources in order to efficiently carry out our mission today and always. We are committed to being an important, contributing member of the cookie industry. We provide our Sugar Sweet, Inc. family a fun, tasty, and rewarding work environment while ensuring our long term success. Sugar Sweet, Inc. is often recognized as one of the leading culinary organizations in the nation. In order to continuously strive for top performance we diligently carry out our mission, and provide our delightful cookies. Our Beliefs: Our shared beliefs are the values that maintain our organization’s success and advancement. The beliefs we all share allow us to properly implement decisions, execute goals, and reach success. We all share diversities, however they allow us to have a clearer understanding of views and a dynamic perspective when working together. These ideas are not complex, yet are powerful in our commitment to one another. We are an organization with integrity, we bring value to our customers, and we gain our strengths through cultural diversity. Sugar Sweet, Inc. Company Officers CEO JENNA PALANTI RESEARCHER ANTONELLA ESPOSTO BUDGET OFFICER EMI GJINI CONTROLLER MONIKA MACKOWIAK Recipe Specifications *COOKIE QUALITY: SOFT & CHEWY *SIZE: DOUGHBALLS AT LEAST 1 TEASPOON IN SIZE *APPEARANCE: LIGHTLY GOLDEN *SPECIAL FEATURES: SPRINKLES AND FROSTING Recipe Summary DIFFICULTY: EASY PREP TIME: 20 MINUTES COOK TIME: 10 MINUTES YIELD: 4 DOZEN COOKIES We chose to bake Sugar Cookies because it was the one cookie we all agreed upon manufacturing and it’s also the one cookie that always tastes great. We also thought this cookie would best fit the timed schedule we had at the Chopping Block. Direct Materials Variance Analysis Direct Materials Price Variance: (AP - SP) AQ ($19.01 - $25.34) 56 cookies = $354.48 F Direct Materials Quantity Variance: (AQ - SQ) SP (56 cookies - 48 cookies) $25.34 = $202.72 U Direct Labor Variance Analysis Direct Labor Rate Variance: (AR - SR) AH ($5 - $5) 1.08 = $0 Direct Labor Efficiency Variance: (AH - SH) SR (1.08 hours- 2.00 hours)$5 = $4.60 F Budget Cost Description Planned Direct Materials Actuals Direct Materials All-Purpose Flour 5LB Bag $ 2.99 All-Purpose Flour 5 OZ Bag $ 2.15 Granulated Sugar 2LB Box $ 1.99 Granulated Sugar 1LB Box $ 1.35 Baking Soda 16 OZ Box $ 0.99 Baking Soda 1 LB Box $ 1.09 Baking Powder 10 OZ Can $ 1.25 Baking Powder 4 OZ Can $ 1.65 Unsalted Butter 1LB Box $ 3.99 Unsalted Butter 8 OZ Box $ 2.94 Eggs 1 Doz. $ 1.99 Eggs 0.5 Doz. $ 1.59 Buttermilk 1 Pint $ 1.49 Buttermilk 1 Qt. $ 2.39 Vanilla Extract 4 OZ BTL. $ 3.19 Vanilla Extract 4 OZ BTL. $ 3.19 Red Sugar Crystals $ 1.49 Sprinkles Variety $ 2.55 Pink Sugar Crystals $ 1.49 Strawberry Frosting 12 OZ Can $ 2.09 Frosting 16 OZ Can $ 2.09 White Frosting 16 OZ Can $ 2.09 Packaging, 50 Count Bag $ 2.39 Packaging, 50 Count Bag $ 1.49 Total Direct Material Costs $ 25.34 Total Direct Material Costs $ 24.57 Budget Direct Manufacturing Labor Direct Manufacturing Labor Prep/Baking/Clean-up Labor hours 1 Decorating & Packaging Labor hours Direct manufacturing labor rate per hour 1 $ $ $ 5.00 5.00 5.00 Total Direct Manufacturing Labor Costs Preparation 0.5 Labor hrs. $ 2.50 Baking 0.25 Labor hrs. $ 1.25 Clean-up 0.08 Labor hrs. $ 0.40 Decorating & Packaging Labor 0.25 hrs. $ 1.25 $ 5.00 $ 10.00 Total Direct Manufacturing Labor Costs $ 5.40 $ 4.00 Total Labor hours 1.08 $ 2.16 $ 10.00 Design Cost $ - Consulting Fee $ 10.00 Consulting Fee $ 10.00 Total Costs $ 56.95 Manufacturing Overhead Allocated per direct manufacturing labor-hour $ 2.00 2 hours Design Cost $42.13 Job Cost Card JOB NO: Sugar Cookies Corporation: Sugar Sweet, Inc. Date Started: Feb. 18, 2008 Date Completed: Feb. 18, 2008 Direct Materials Ingredients Quantity Used Unit Cost All-Purpose Flour 2.75 cups 0.05/cups $0.14 Granulated Sugar 1.5 cups 0.03/cups $1.68 Baking Soda 1 teaspoons 0.02/teaspoons $1.12 Baking Powder 0.5 teaspoons 0.009/teaspoons $0.50 Unsalted Butter 1 cup 0.02/cups $1.12 Eggs 0.5 Doz. 0.1/egg $5.60 Buttermilk 4 tablespoons 0.07/tablespoons $3.92 Vanilla Extract 1 teaspoons 0.02/teaspoons $1.12 Sprinkles Variety 3 tablespoons 0.05/tablespoons $2.80 Strawberry Frosting 0.5 cups 0.009/cups $0.50 White Frosting 0.5 cups 0.009/cups $0.50 Total Total Costs $19.01 Job Cost Card Direct Manufacturing Labor Period Covered Labor Hours Used Hourly Rate Feb. 18, 2008 Preparation 0.5 $5 $ 2.50 Feb. 18, 2008 Baking 0.25 $5 $ 1.25 Feb. 18, 2008 Clean-up 0.08 $5 $ 0.40 Feb. 18, 2008 Decorating & Packaging 0.25 $5 $ 1.25 $ 5.40 Total Total Costs Manufacturing Overhead Date Allocation Base Direct Manufacturing Labor hours Feb. 18, 2008 DM Labor Hours Total Manufacturing Cost of Job AllocationBase Unit Used (Hours) 1.08 Allocation Base Rate $ 2.00 Total Costs $ 2.16 $26.57 Marketing Strategy We pride our business on customer word-of-mouth experiences, and have been able to increase our revenue each quarter with our successful reputation. We advertise our products in the Chicago Cookie Magazine. Furthermore, we offer a customer rewards card; Buy 10 packages of cookies, receive the 11th free! Distribution Channels: Come in to our storefront to experience the sweetest taste in Chicago! We are located at 4 N Michigan Avenue Chicago, IL 60610 Manufacturing Process Successfulness : Our company was a huge success at the Chopping Block. We managed our time efficiently and successfully, having enough time to prep, trategies we would employ to be more successful in the future: bake, cool, and decorate the cookies. Try the recipe out beforehand, to see how many sugar cookies the recipe actually yields instead of calls for. Be more efficient when shopping for ingredients. For instance, try to buy buttermilk in a smaller size so we don't have as much wastage. Also we would need to take into consideration time wasted while waiting to use an oven. What’s Sweeter Than Sweet? Sugar Sweet, Inc.’s Sugar Cookies! Try One Today… Please Visit Our Website: http://www.students.depaul.edu/~jpalant1