Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products

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Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products using a single plantwide factory rate based on direct labor hours. Information for the month of May, Bugaboo's first month of operations, follows:

Bugaboo has budgeted direct labor costs for May at $8.50 per hour. Budgeted direct materials costs for May are: Fluffs, $0.75/unit; Crinkles $0.40/unit; and Snaps $0.30/unit.
Bugaboo's budgeted overhead costs for May are:

Assume that Bugaboo sells all the boxes it produces in May. Round your answers to two decimal places, if necessary.
a. Compute Bugaboo's plantwide factory overhead rate for May.$_______per direct labor hour
b. Compute May's product cost for each type of cookie.

Direct Labor Hours per unit Budgeted Unit Volume 80,000 boxes 0.10 Fluffs Crinkles 60,000 boxes 0.20 Snaps 20,000 boxes 0.50 Indirect Labor $280,000 Utilities $65,000 Supplies $45,000 Depreciation $30,000 Total $420,000