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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
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
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