Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Archie & Corporation manufactures two products: Tasty Bones and Gourmet Bones. Last year Archie had total FOH of $645,000 and it applies FOH using an
Archie & Corporation manufactures two products: Tasty Bones and Gourmet Bones. Last year Archie had total FOH of $645,000 and it applies FOH using an activity-based costing (ABC) system that allocates its factory overhead to four cost pools: Activity Cost Pool Activity Measure Estimated Total Cost Mixing Direct Labor Hours (DLH's) $ 120,000 Baking Oven Hours (OH's) 500,000 Purchasing Purchase Orders (PO's) 5.000 Inspections Inspections 20,000 The estimated usage of each activity measure by product line is: Activity Measure Tasty Gourmet DLH'S 1.000 2,000 OH's 2.000 8,000 300 PO's 200 Inspections 80 20 1. The TOTAL amount of factory overhead that should be allocated to Gourmet is (Do not use dollar signs - JUST numbers!) Estimated production and sales and direct material and direct labor costs are forecasted to be: Gourmet Tasty 200,000 Production/Sales units 100,000 $10.25 Selling Price per unit $5.80 Direct material per unit $1.50 $3.10 $0.90 Direct Labor per unit $0.25 2. The gross profit per unit of Gourmet sold is Do not use dollars signs - JUST numbers)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started