Exhibit 2
Detailed Production Information
Break Out	Polynesian		Vanilla
Direct Material	$2.00	per gallon	$1.80	per gallon
Direct Labor	$1.20	per gallon	$1.20	per gallon
Budgeted Production	2,000	gallons	100,000	gallons
Batch Size	100	gallons	2,500	gallons
Set Ups	3	per batch	3	per batch
Purchase Order Size	50	gallons	1,000	gallons
Blender Time	0.6	hours per 100 gallons	0.3	hours per 100 gallons
Freezer Time	1.0	hours per 100 gallons	1.0	hours per 100 gallons
Packaging Machine Time	0.3	hours per 100 gallons	0.2	hours per 100 gallons
Required 2. Activity Based Costing Method:
	Compute Number of Drivers for Budgeted Production
	Polynesian		Vanilla
		Purchase Orders		Purchase Orders
		Set Ups		Set Ups
		Blender Hours		Blender Hours
		Freezer Hours		Freezer Hours
		Packing Machine Hours		Packing Machine Hours
		Batches		Batches

Compute the Actual Basis Used in the PURPLE cells (For example, How many purchase orders will be made to produce 2,000 gallons of Polynesian?)

Activity Purchasing Material Handeling Blending Freezing Packaging Quality Control Exhibit 1 Budgeted Manufacturing Overhead Cost Est. Cost Driver Est. Driver S's Per Driver Cost $80.000 Purchase Orders 909 $95,000 Set Ups 1846 $122,000 Blender Hours 1000 $175,000 Freezer Hours 1936 $110,000 Packing Machine Hours 1100 $18,000 Batches 286 per order per set up per hour per hour per hour per batch Break Out Direct Material Direct Labor Budgeted Production Batch Size Set Ups Purchase Order Size Blender Time Freezer Time Packaging Machine Time Exhibit 2 Detailed Production Information Polynesian $2.00 per gallon $1.20 per gallon 2,000 gallons 100 gallons 3 per batch 50 gallons 0.6 hours per 100 gallons 1.0 hours per 100 gallons 0.3 hours per 100 gallons Vanilla $1.80 per gallon $1.20 per gallon 100,000 gallons 2,500 gallons 3 per batch 1,000 gallons 0.3 hours per 100 gallons 1.0 hours per 100 gallons 0.2 hours per 100 gallons Vanilla Required 1. Plantwide Allocation Method: Polynesian Direct Materials/gallon Direct Labor/gallon MOH/gallon (DL *2) = Total Cost/Gallon Required 2. Activity Based Costing Method: Compute Number of Drivers for Budgeted Production Polynesian Vanilla Purchase Orders Purchase Orders Set Ups Set Ups Blender Hours Blender Hours Freezer Hours Freezer Hours Packing Machine Hours Packing Machine Hours Batches Batches Polynesian Vanilla Direct Materials Direct Labor MOH - Purchasing MOH - Material Handling MOH - Blending MOH - Freezing MOH - Packaging MOH - Quality Control = Total Cost +Number of Gallons = Total Cost/Gallon Required 3: Evaluate your Findings: Activity Purchasing Material Handeling Blending Freezing Packaging Quality Control Exhibit 1 Budgeted Manufacturing Overhead Cost Est. Cost Driver Est. Driver S's Per Driver Cost $80.000 Purchase Orders 909 $95,000 Set Ups 1846 $122,000 Blender Hours 1000 $175,000 Freezer Hours 1936 $110,000 Packing Machine Hours 1100 $18,000 Batches 286 per order per set up per hour per hour per hour per batch Break Out Direct Material Direct Labor Budgeted Production Batch Size Set Ups Purchase Order Size Blender Time Freezer Time Packaging Machine Time Exhibit 2 Detailed Production Information Polynesian $2.00 per gallon $1.20 per gallon 2,000 gallons 100 gallons 3 per batch 50 gallons 0.6 hours per 100 gallons 1.0 hours per 100 gallons 0.3 hours per 100 gallons Vanilla $1.80 per gallon $1.20 per gallon 100,000 gallons 2,500 gallons 3 per batch 1,000 gallons 0.3 hours per 100 gallons 1.0 hours per 100 gallons 0.2 hours per 100 gallons Vanilla Required 1. Plantwide Allocation Method: Polynesian Direct Materials/gallon Direct Labor/gallon MOH/gallon (DL *2) = Total Cost/Gallon Required 2. Activity Based Costing Method: Compute Number of Drivers for Budgeted Production Polynesian Vanilla Purchase Orders Purchase Orders Set Ups Set Ups Blender Hours Blender Hours Freezer Hours Freezer Hours Packing Machine Hours Packing Machine Hours Batches Batches Polynesian Vanilla Direct Materials Direct Labor MOH - Purchasing MOH - Material Handling MOH - Blending MOH - Freezing MOH - Packaging MOH - Quality Control = Total Cost +Number of Gallons = Total Cost/Gallon Required 3: Evaluate your Findings: