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Assume that Cloud Star owners Jennifer Melton and Brennan Johnson are considering adding two types of petfood to their existing product line. Research had determined
Assume that Cloud Star owners Jennifer Melton and Brennan Johnson are considering adding two types of petfood to their existing product line. Research had determined that there is good demand for deg food in forty round bags and eat food in one-half pound enne Cloud Star identified the following partial list of activities, costs, and activity drivers expected for the next year. Activity Handling materials Storage Costs Expected Costs $105,000 $820,000 Cost Driver Number batches made Weight of finished product Production volume Batches made Dog Food 100,000 units 200 batches Cat Food 200,000 units 150 batches 11. Refer to the Cloud Star data above. How much overhead cost will be assigned to each product line using activity-based costing (ABC)? A) Dog Food: $462,500; Cat Food: $462,500. B) Dog Food: $860,000; Cat Food: $65,000 C) Dog Food: $60,000; Cat Food: $45,000 D) Dog Food: $800,000; Cat Food: $20,000, E) Dog Food: $320; Cat Food: $320. 12. Refer to the Cloud Star data above. How much overhead cost will be assigned to each unit of product using activity-based costing (ABC)? A) Dog Food: $4.62; Cat Food: $4.62. B) Dog Food: $2.64; Cat Food: $2.64. C) Dog Food: $8.60; Cat Food: $0.33. D) Dog Food: $0.26; Cat Food: $8.60. E) Dog Food: $0.12; Cat Food: $3.85
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