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Aunt Dorothy Snacks just received an order to produce 12,000 single-serving bags of gourmet, fancy-cut, sweet potato chips. The order will require 22 preparation
Aunt Dorothy Snacks just received an order to produce 12,000 single-serving bags of gourmet, fancy-cut, sweet potato chips. The order will require 22 preparation hours and 62 cooking and draining hours. BEE (Click the icon to view the relevant activity rates.) Read the requirements. 1. What is the total amount of manufacturing overhead 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. Preparation Cooking/draining Packaging Activity cost allocation rate Cost driver (actual use) Manufacturing overhead allocated Es just received an order to produce 12,000 single-serving bags of gourmet, fancy- Co view the relevant activity rates.) Data table Activity Cost Activity Allocation Rate Cost Driver Preparation.. $ 23.00 Preparation time Cooking and draining.... $ 17.00 Cooking and draining time. Packaging.... $ 0.05 Units packaged Print Done Requirements 1. Use the activity rates provided to compute the following: What is the total amount of manufacturing overhead that should be allocated to this order? 2. How much manufacturing overhead should be assigned to each bag? 3. What other costs will the company need to consider to determine the total manufacturing costs of this order? Print Done - X
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