Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

15 A company produces numerous blends of coffee, two of which are known as the French blend and the Italian blend. The company's ABC system

15
image text in transcribed
image text in transcribed
A company produces numerous blends of coffee, two of which are known as the French blend and the Italian blend. The company's ABC system divides es total manufacturing overhead of $1982.500 into four activity cost pools as shown below. Activity Activity Measure Expected Activity Estimated cost Purchasing Purchase orders 1,500 orders $ 330,00 Materials handling Number of setups 1,300 setups 5 S40,000 Quality control Number of batches 600 batches $ 210,000 Roasting Roasting hours 95,000 hours $ 992,500 Dots regarding production of the French and Italian blends is as follows: Expected sales Batch size Setups Purchase order size Roasting the per 100 pounds French Blend 100.000 pounds 12,000 pounds 3 per batch 20.000 pounds 0.5 hours Italias Blend 5,000 pounds 1,250 pounds 3 per batch 500 pounds 0.5 hours Assume the company uses a plante de pretermined ovethedrate based on roosting hours. The planta de prendovehendence Assume the company uses a plantwide predetermined overhead rate based on roasting hours. The plantwide predetermined overhead rate is closest to Multiple Choice $987 50.30 $20. $20 30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems And Internal Control

Authors: Eddy Vaassen, Roger Meuwissen, Caren Schelleman

2nd Edition

0470753951, 9780470753958

More Books

Students also viewed these Accounting questions