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7. Check it 7 Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost
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Check it 7 Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. 1.87 points Activity Washing, Pressing & Filtering (WPF) Bottling Total Activity Cost Cost Driver $1,929,950 Washing, Pressing, and Filtering hours $1,267,500 Number of bottles Standard 48,800 hours 338,000 bottles Extra Virgin 110,700 hours 84,500 bottles Skipped Additional information about each grade of olive oil is as follows: eBook Hint Print Sales Grade Revenue Standard $5,195,000 Extra Virgin $3,050,000 Direct Materials Costs $900,000 $600,000 Direct Labor Costs $375,000 $150,000 References Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the activity rates, determine the total amount of overhead assigned to each product. (Round activity rates to 2 decimal places.) Standard Extra Virgin points Skipped Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Required 4 Hint Print Using the activity rates, determine the total amount of overhead assigned to each product. (Round activity rates to 2 decimal places.) References Standard Activity Extra Virgin Overhead Activity for Extra Virgin assigned to Extra Virgin Activity for Standard Activity Rate Overhead assigned to Standard WPF Bottling Total 0 $ 0 7 Grade Standard Extra Virgin Revenue $5,195,000 $3,050,000 Costs $900,000 $ 600,000 Costs $375,000 $150,000 1.87 points Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Skipped eBook Complete this question by entering your answers in the tabs below. Hint Print References Required 1 Required 2 Required 3 Required 4 Calculate the gross profit for each product. Standard Extra Virgin Revenue Cost of goods sold Gross Profit $ 0 $ 0Step by Step Solution
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