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A Activity Rates Activity Activity Cost Allocation Rate Base Units $ 48.00 Preparation Cooking and draining Packaging 22.00 per hour of preparation per hour of
A Activity Rates Activity Activity Cost Allocation Rate Base Units $ 48.00 Preparation Cooking and draining Packaging 22.00 per hour of preparation per hour of cook and drain per unit packaged 0.05 Print Done Uncle Joe produces different styles of potato chips (ruffled, flat, thick-cut, and gourmet) for different corporate customers. Each style of potato chip requires different preparation times, different cooking and draining times (depending on desired fat content), and different packaging (single serving versus bulk). Therefore, Uncle Joe has decided to use ABC costing to better capture the manufacturing overhead costs incurred by each style of chip. Uncle Joe just received an order to produce 14,000 single-serving bags of gourmet, fancy-cut, low-fat potato chips. The order will require 17 preparation hours and 39 cooking and draining hours. The cost allocation rate for each activity is provided in the accompanying table. (Click the icon to view the relevant activity rates.) Requirements 1. What is the total amount of MOH that should be allocated to this order? 2. How much MOH should be assigned to each bag? 3. What other costs will Uncle Joe need to consider to determine the total manufacturing costs of this order? Requirement 1. What is the total amount of MOH that should be allocated to this order? Determine the basic formula needed to allocate overhead to this order, then compute the overhead allocated to each activity. (Round all intermediary calculations to two decimal places as needed. Round your final answers to the nearest whole dollar.) Allocated manufacturing x = overhead Preparation Cooking/draining X Packaging The total amount of manufacturing overhead assigned to this order is $ Requirement 2. How much MOH should be assigned to each bag? Determine the formula needed to calculate manufacturing overhead to be assigned to each bag, and then compute the manufacturing overhead per bag. (Round your answer to the nearest cent.) Manufacturing overhead per unit Requirement 3. What other costs will Uncle Joe need to consider to determine the total manufacturing costs of this order? In addition to the costs above, Uncle Joe needs to consider
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