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.

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 $1,652,400 Washing, Pressing, and Filtering hours $ 663,000 Number of bottles Standard 46,200 hours 312,000 bottles Extra Virgin 106,800 hours 78,000 bottles Additional information about each grade of olive oil is as follows: Grade Standard Extra Virgin Sales Revenue $5,130,000 $2,400,000 Direct Materials Costs $900,000 $600,000 Direct Labor Costs $375,000 $150,000 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 Ct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 1 Calculate the activity rate for each cost pool. (Round your answers to 2 decimal places.) Activity Washing, Pressing & Filtering (WPF) Bottling Cost Pool per hour per bottle 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 Activity Extra Virgin Overhead Activity for Extra Virgin assigned to Extra Virgin Activity Rate Activity for Standard Overhead assigned to Standard WPF Bottling Total $ 0 $ 0 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 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 $ 0