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Data regarding the expected production and sales of Kenya Dark and Viet Select coffee are presented below. Expected production and sales Batch size Setups
Data regarding the expected production and sales of Kenya Dark and Viet Select coffee are presented below. Expected production and sales Batch size Setups Purchase order size Roasting time per 100 pounds Blending time per 100 pounds Packaging time per 100 pounds Required: Kenya Dark 97,000 pounds 9,700 pounds 2 per batch 19,400 pounds 1.5 roasting hours 0.5 blending hours 0.3 packaging hours Viet Select 2,000 pounds 400 pounds 2 per batch 400 pounds 1.5 roasting hours 0.5 blending hours 0.3 packaging hours 1. Using direct labor-hours as the manufacturing overhead cost allocation base, do the following: a. Determine the plantwide predetermined overhead rate that will be used during the year. b. Determine the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee. 2. Using the activity-based absorption costing approach, do the following: a. Determine the total amount of manufacturing overhead cost assigned to Kenya Dark coffee and to Viet Select coffee for the year. b. Using the data developed in (2a) above, compute the amount of manufacturing overhead cost per pound of Kenya Dark coffee and Viet Select coffee. c. Determine the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 2C Using the activity-based absorption costing approach, determine the total amount of manufacturing overhead cost assigned to Kenya Dark coffee and to Viet Select coffee for the year. Kenya Dark Viet Select Total amount of manufacturing overhead cost
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