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4 Gerbig Snacks produces different types of potato chips (ruffled, flat, thick cut, gourmet) for different corporate customers. Each style of potato chip requires different
4 Gerbig Snacks produces different types of potato chips (ruffled, flat, thick cut, gourmet) for different corporate customers. Each style of potato chip requires different preparation time, different cooling and draining time, and different packaging. Gerbig has identified the following activities related to yearly manufacturing of overhead costs and cost drivers: Activity Manufacturing overhead Preparation Cost Driver $610,000 Cooking and Draining Preparation time $972,000 Cooking and draining Time Packaging $320,000 Units packaged a. Compute the activity cost allocations for each activity assuming the following total established activity for the year: 10,000 preparation hours, 36,000 cooking and draining hours, 4 million packages
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