Question
Crane Pizza, Inc. is in the process of documenting all of its costs using Activity-Based Costing (ABC). Crane specializes in unique sauces, and it has
Crane Pizza, Inc. is in the process of documenting all of its costs using Activity-Based Costing (ABC). Crane specializes in unique sauces, and it has assigned the following Manufacturing Overhead (MOH) costs to their key activities: Moving and sorting (170 pounds moved), $32000; quality control (780 inspections completed), $21840; and Cleaning and Maintenance (2000 cleaning/maintenance hours), $17200.
The actual activities for each of the two products is presented here.
Activity and Cost Driver Red Sauce White Sauce Move and sort ingredients (# of pounds) 82 88 Quality control (# of inspections) 590 190 Cleaning and maintenance (# of hours) 1380 620
How much of the Cleaning and Maintenance MOH would be allocated to the white sauce units? (Round intermediate calculations to 2 decimal places, e.g. 12.25.)
O $5332.00 O $17269.80 O $6034.00 O $3839.80
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