E4-16 (Algo) Calculate Total Manufacturing Costs and Gross Profit [LO 4.4] Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Activity Washing, Pressing & Filtering (WPF) Bottling Total Activity Cost Cost Driver $1,921,200 Washing, Pressing, and Filtering hours $1,625, eee Number of bottles Standard 47,888 hours 328,eee bottles Extra Virgin 189,289 hours 82,eee bottles Additional Information about each grade of olive oil is as follows: Direct Direct Sales Materials Labor Grade Revenue Costs Costs Standard $5,178,eee $988,eee $375, eee Extra Virgin $2,888, eee $600,000 $158,888 Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the activity rate for each cost pool. (Round your answers to 2 decimal places.) Activity Washing, Pressing & Filtering (WPF) Botting Cost Pool per hour per bottle (Required 1 Required 2 > E4-16 (Algo) Calculate Total Manufacturing Costs and Gross Profit [LO 4-4] Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Activity Washing, Pressing & Filtering (WPF) Bottling Total Activity Cost Cost Driver $1,821, 288 Washing, Pressing, and Filtering hours $1,025, eee Number of bottles Standard 47,888 hours 328,eee bottles Extra Virgin 189,288 hours 82,eee bottles Additional Information about each grade of olive oil is as follows: Grade Standard Extra Virgin Direct Sales Materials Revenue Costs $5,170,eee $900,eee $2,888,eee $688,888 Direct Labor Costs $375,000 $150, eee Required: 1. Calculate the activity rate for each cost pool. 2 Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the activity rates, determine the total amount of overhead assigned to each product. (Round activity rates to 2 decimal places.) Standard Overhead Activity for Standard assigned to Standard Extra Virgin Overhead Activity for Extra Virgin assigned to Extra Virgin Activity Activity Rate WPF Botting Total $ 0 $ 0 E4-16 (Algo) Calculate Total Manufacturing Costs and Gross Profit [LO 4.4) Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Activity Washing, Pressing & Filtering (WPF) Bottling Total Activity Cost Cost Driver $1,821,200 Washing, Pressing, and Filtering hours $1,025,000 Number of bottles Standard 47,800 hours 328, eee bottles Extra Virgin 189,288 hours 82,eee bottles Additional Information about each grade of olive oil is as follows: Grade Standard Extra Virgin Direct Direct Sales Materials Labor Revenue Costs Costs $5,170,eee $988,eee $375, eee $2,888,888 $688,000 $150,888 Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine total manufacturing cost for each product. Standard Extra Virgin Direct Materials Direct Labor ABC Overhead Total manufacturing costs $ 0 $ 0 E4-16 (Algo) Calculate Total Manufacturing Costs and Gross Profit [LO 4-4] Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Activity Washing, Pressing & Filtering (WPF) Bottling Total Activity Cost Cost Driver $1,821,288 Washing, Pressing, and Filtering hours $1,625, eee Number of bottles Standard 47,988 hours 328,eee bottles Extra Virgin 189,288 hours 82,eee bottles Additional Information about each grade of olive oil is as follows: Grade Standard Extra Virgin Sales Revenue $5,170,000 $2,800, eee Direct Materials Costs $980, eee $600, eee Direct Labor Costs $375,888 $150,eee Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the gross profit for each product. Standard Extra Virgin Revenue Cost of goods sold Gross Profit $ 0 $
