Compute activity cost allocation rates (Learning Objective 2) Part A. The Lunchbox produces different types of sandwiches. Two of their specialties are a peanut butter and jelly sandwich on homemade bread and a gourmet shaved turkey breast with brie and cranberry spread on homemade bread. Each sandwich requires different preparation time and different packaging. Therefore, The Lunchbox has decided to try ABC to better capture the manufacturing overhead costs incurred by each sandwich. The Lunchbox has identified the following activities related to yearly manufacturing overhead costs and cost drivers associated with producing these sandwiches: Activity Given the estimated total manufacturing overhead cost of $18,380 and the breakdown between activities listed below, compute the activity cost allocation rates for each activity assuming the following total estimated activity for the year: 1,700 hours breadmaking time, 6,400 meat slicing hours and 4,000 packages. Estimated Total Manufacturing Overhead Costs Estimated Total Usage of Cost Driver Activity Cost Allocation Rate Breadmaking Meat slicing Assembly $5,100 $9,280 $4,000 Part B. The Lunchbox just received an order to produce 120 gourmet turkey sandwiches. The order will require 10 hours of breadmaking time and 15 meat slicing hours. Each sandwich is one unit. Use the activity rates you calculated in the chart above to allocate MOH to the job. The direct materials needed for the job will cost $66 and direct labor will total $74. What is the total amount of manufacturing overhead that should be allocated to this order? Activity Breadmaking Meat slicing Assembly Total Job Cost: = = ? Cost per sandwich = ? Activity Rate Actual Activity for Job MOH Assigned Total MOH