Activity Setups Purchasing Materials handling Quality control Roasting Blending Packaging Budgeted Driver Cost Driver Consumption Purchase orders 1,238 Budgeted Cost $ 587,000 1,880 728,000 Batches 800 152,000 Roasting hours 96,900 969,000 Blending hours 34,400 344,000 Packaging hours 26,800 268,000 $ 3,048,000 Total factory overhead cost Data regarding the current year's production of just two of its lines, Mona Loa and Malaysian, follow. There is no beginning or ending direct materials inventory for either of these coffees. Budgeted sales Batch size Setups Purchase order size Roasting time Blending time Mona Loa 108,000 pounds 10,800 pounds 3 per batch 25,800 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds 2,080 pounds 580 pounds 3 per batch 580 pounds Malaysian 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Packaging time Required: 1. Using Coffee Bean Incorporated's current product costing system, a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver. b. Determine the full product costs and selling prices of one pound of Mona Loa coffee and one pound of Malaysian coffee. 2. Using an activity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee and 1 pound of Malaysian coffee. Allocate all overhead costs to the 108,000 pounds of Mona Loa and the 2,080 pounds of Malaysian. < Prev 3 of 30 Next > n