Bonita's Nut House is a processor and distributor of a variety of different nuts. The company buys nuts from around the world and roasts, seasons and packages them for resale. Bonita's Nut House currently offers 15 different types of nuts in one-pound bags through catalogs and gourmet shops. The company's major cost is that of the raw nuts; however the predominantly automated roasting and packing processes consume a substantial amount of manufacturing overhead cost. The company uses relatively little direct labor Some of Bonita's nuts are very popular and sell in large volumes, but some of the newer types sell in very low volumes. Bonita's prices its nuts at cost including overhead) plus a markup of 50%. If the resulting prices of certain nuts are significantly higher than the market price adjustments are made. Although the company competes primarily on the quality of its products, customers are price conscious Data for the annual budget include manufacturing overhead of $7.917.000, allocated on the basis of each product's direct labor cost The annual budgeted direct labor cost totals $1,319,500. Based on the sales budget and raw materials standards. purchases and use of raw materials are expected to total 59,000,000 for the year The unit raw material and direct labor costs of a one-pound bag or two of the company's products follows, Cashew Chestnuts 54.20 $3.20 Raw materials Direct labor 0.30 0.30 Bonita's controller believes that the traditional costing wstem may be providing misleading cost information so she has developed the following analysis of the annual budgeted manufacturing costs Cashews Chestnuts Raw materials $420 $3.20 Direct labor 0.30 0.30 Bonita's controller believes that the traditional costing system may be providing misleading cost information, so she has developed the following analysis of the annual budgeted manufacturing costs. Budgeted Activity Activity Cost Driver Budgeted Cost Purchase orders 11,460 $1,146,000 Purchasing Material handling 1,800 1,800,000 Number of setups Number of batches Quality control 600 300.000 96,100 Roasting 2,883,000 Roasting hours Seasoning hours Packaging hours 33.600 Seasoning Packaging Total manufacturing overhead cost 1,000,000 26,000 780,000 $7.917.000 Data regarding the armul production of cashews and chestnuts follow. There will be no Raw Materials inventory for either type of nuts at the begin of the year Data regarding the annual production of cashews and chestnuts follow. There will be no Raw Materials Inventory for either type of nuts at the beginning of the year Cashews Chestnuts Expected sales 100,000 lbs 5,000 lbs Batch size 10,000 lbs. 500 lbs Setups 3 per batch 4 per batch Purchase order size 2,000 lbs 2,500 lbs. Roasting time 1 hour/100 lbs 2 hour/100 lbs 0.50 hour/100 lbs 0.50 hour/100 lbs Seasoning time Packaging tiene 0.10 hour/100 lbs. 0.10 hour/100 lbs () Your swer is correct Using the current conting system, calculate the cost and selling price of one pound of cathews and one pound of chestnuts Round predetermined overhead rate to decimal places25and final answers to 2 decimal places, s 15.25) Your answer is correct. Using the current costing system, calculate the cost and selling price of one pound of cashews and one pound of chestnuts. (Round predetermined overhead rate to O decimal places, eg. 25% and final answers to 2 decimal places, eg. 15.25.) Cashews Chestnuts Cost 6.30 , 3 5.30 b. 9:45 Selling Price b$ b. 7.95 e Textbook and Media attempts: 1 of 3 used (60) Calculate ABC rates Cost Pool Activity Rate Purchasing /purchase order Calculate ABC rates Cost Pool Activity Rate $ Purchasing /purchase order $ Material handling setup $ Quality control /batch $ Roasting /roasting hour $ Seasoning seasoning hour Packaging /packaging hour Textbook and Media Save for Attempts of 3 used Submit Answer thici