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Cotfee Bean incorporated (CBi) processes and distributes high-quality coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale.

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Cotfee Bean incorporated (CBi) processes and distributes high-quality coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 2 coffees to gourmet shops in 1 -pound bags. The major cost is direct materials, however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively little direct labor. CB1 prices its coffee at full product cost, including allocated overhead, plus a markup of 30%. If its prices are significantly higher than the market, CBI lowers its prices. The company competes primarily on the quality of its products, but customers are price conscious as well Data for the current budget include factory overhedd of $3.266,000, which has been allocated on the basis of each product's direct Labor cost. The budgeted direct labor cost for the current year totals $600,000. The firm budgeted $6,000,000 for purchase and use of direct materials (mostly coffee beans). The budgeted direct costs for 1 pound bags are as follown: CBI's controller, Mora Clin, believes that its current product costing system could be providing misleading cost information She has developed this analysis of the current year's budgeted factory overhead costs: Data regarding the current year's production for the Mona Loa and Malaysian lines follow There is no beginning or ending direct materials inventory for elther of these coffees. Coffee Bean has total practical capacity as noted in the table below. . .e. processing 1,780 purchase orders, 2,780 setups. etc. These are the fevels of activity work that are sustainable. Required: 1. Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round "Usage \%" and "Practical Copactity Rote" to 2 decimal places. For percentages 1234=12.34% )

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