Compute activity cost allocation rates Part A. NatureMade Snacks produces different styles of sweet potato chips (ruffled, flat, thick-cut, gourmet) for different corporate customers. Each style of sweet potato chip requires different preparation time, different cooking and draining times (depending on desired fat content), and different packaging (single serving versus bulk). Therefore, NatureMade has decided to try ABC to better capture the manufacturing overhead costs incurred by each style of chip. NatureMade has identified the following activities related to yearly manufacturing overhead costs and cost drivers associated with producing sweet potato chips: Given the estimated total manufacturing overhead cost of $1,838,000 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: 8,500 preparation hours, 32,000 cooking and draining hours, and 4 million packages. Activity Estimated Total Manufacturing Overhead Costs Estimated Total Usage of Cost Driver Activity Cost Allocation Rate Preparation $510,000 Cooking & Draining Packaging $928,000 $400,000 Part B. Nature Made Snacks just received an order to produce 12,000 single-serving bags of gourmet, fancy-cut, sweet potato chips. The order will require 21 preparation hours and 36 cooking and draining hours. Use the activity rates you calculated in the chart above to allocate MOH to the job. What is the total amount of manufacturing overhead that should be allocated to this order? Activity Preparation Cooking & Draining Packaging Activity Rate Actual Activity for Job MOH Assigned Total MOH