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A company produces numerous blends of coffee, two of which are known as the Irish blend and the Columbian blend. The company's ABC system divides

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A company produces numerous blends of coffee, two of which are known as the Irish blend and the Columbian blend. The company's ABC system divides its total manufacturing overhead of $1,982,500 into four activity cost pools as shown belon Activity Activity Measure Expected Activity Estimated cost Purchasing Purchase orders 1,500 orders $ 330,000 Materials handling Number of setups 1,800 setups $540,000 Quality control Number of batches 600 batches $ 210,000 Roasting Roasting hours 95,000 hours $902,500 Data regarding production of the Irish and Columbian blends is as follows: Expected sales Batch size Setups Purchase order size Roasting time per 100 pounds Irish Blend 100,000 poueds 10,000 pounds 3 per batch 20,000 pounds 0.5 hours Columbian Blend 5,000 pounds 1,250 pounds 3 per batch 500 pounds 0.5 hours Assume the company uses a plantwide predetermined over rate based on roasting hours. The plantwide predetermined overhead rate is closest to: Multiple Choice Setups Purchase order size Roasting time per 100 pounds 3 per batch 20,000 pounds 0.5 hours 3 per batch 500 pounds 0.5 hours Assume the company uses a plantwide predetermined over rate based on roasting hours. The plantwide predetermined overhead rate is closest to: Multiple Choice $9.50 $20.50 $9.87 $20.87

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