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Duncan Robinson opened a new doughnut shop, Duncan Donuts. Overhead costs are assigned to each of the following activity cost pools and the total use
Duncan Robinson opened a new doughnut shop, Duncan Donuts. Overhead costs are assigned to each of the following activity cost pools and the total use of each respective cost driver. Mixing Baking Boxing $100,000 $500,000 $200,000 $400,000 in direct materials costs 100,000 machine hours 20,000 batches Duncan's Three Cheese Donuts incurred $100,000 in direct materials, 30,000 machine hours, 5,000 batches, and $125,000 in direct labor costs. Duncan's produced 30,000 boxes of Three Cheese Donuts. What is the product cost of one box of Three Cheese Donuts? O a. $27.50 O b. $11.67 O c. $7.50 O d. $15
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