Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Canvas . Time Running 1 Hour, 26 Mi La Tienda de Postres is a small business specializing in deserts. The company makes premium cakes, anniversary
Canvas . Time Running 1 Hour, 26 Mi La Tienda de Postres is a small business specializing in deserts. The company makes premium cakes, anniversary cakes, and scones. The cake department and scones department incurred $88,200 and $48,000 of overhead at year-end, respectively The following information is per unit of cake and per dozen of scones: Scones (Dozen) Anniversary Cakes Premium Cakes $5 $50 $20 Direct material $10 $75 $30 Direct labor 0.8 hours 1.5 hour 0.4 hours/ dozen oven hours 2 hours 10 hours 0.2 hours/ dozen labor hours 3.125 1.000 9,600 dozens units produced Suppose La Tienda de Postres would like to start using departmental rates to allocate manufacturing overhead, and it has decided to use oven hours as the allocation base for the cake department and direct labor hours for the scones department. How much manufacturing overhead would be allocated for each premium cake? $17.64 $11.25 $17.06 $22.05
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