Java Source, Inc.. (JSI) buys coffee beans from around the world and roasts, blends, and packages them for resale. Some of JSI'S coffees are very popular and sell in large volumes, while a few of the newer blends sell in very low volumes. JSI prices its coffees at manufacturing cost plus a markup of 25%. For the coming year, JSI's budget includes estimated manufacturing overhead cost of $2.992.400.JSI assigns manufacturing overhead to products on the basis of direct labor-hours. The expected direct labor cost totals $576,000, which represents 48.000 hours of direct labor time. The expected costs for direct materials and direct labor for one-pound bags of two of the company's coffee products appear below. Direct materials Direct labor (0.825 hours per bag) Kenya Dark Viet Select $ 4.68 $ 3.30 $ .30 0.30 JSI's controller believes that the company's traditional costing system may be providing misleading cost information. To determine whether or not this is correct, the controller has prepared an analysis of the year's expected manufacturing overhead costs, as shown in the following table: Expected Activity for the Year Activity Cost Pool Purchasing Material handling Quality control Roasting Blending Packaging Total manufacturing overhead cost Activity Measure Purchase orders Number of setups Number of batches Roasting hours Blending hours Packaging hours 1.72e orders 1.77e setups 649 batches 96,888 roasting hours 33,180 blending hours 25,700 packaging hours Expected Cost for the Year $ 516, 889 698,300 153.689 968.800 364,100 388.489 $ 2,992.ee Data regarding the expected production of Kenya Dark and Viet Select coffee are presented below. Expected sales Batch size Setups Purchase order size Roasting time per 100 pounds Blending time per 100 pounds Packaging time per 100 pounds Kenya Dark 180,eee pounds 10,880 pounds 3 per batch 20,880 pounds 1.5 roasting hours 0.5 blending hours 8.3 packaging hours Viet Select 3,880 pounds 680 pounds 3 per batch 600 pounds 1.5 roasting hours 8.5 blending hours 8.3 packaging hours Required: 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 20 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 Java Source, Inc., (JSI) buys coffee beans from around the world and roasts, blends, and packages them for resale. Some of JSI's coffees are very popular and sell in large volumes, while a few of the newer blends sell in very low volumes. JSI prices its coffees at manufacturing cost plus a markup of 25%. For the coming year, JSI's budget includes estimated manufacturing overhead cost of $2.992.400.JSI assigns manufacturing overhead to products on the basis of direct labor-hours. The expected direct labor cost totals $576,000, which represents 48,000 hours of direct labor time. The expected costs for direct materials and direct labor for one-pound bags of two of the company's coffee products appear below. Direct materials Direct labor (2.825 hours per bag) Kenya Dark Viet Select $ 4.60 $ 3.38 $ 0.30 $ 8.38 JSI's controller believes that the company's traditional costing system may be providing misleading cost information. To determine whether or not this is correct, the controller has prepared an analysis of the year's expected manufacturing overhead costs, as shown in the following table: Activity Cost Pool Purchasing Material handling Quality control Roasting Blending Packaging Total manufacturing overhead cost Activity Measure Purchase orders Number of setups Number of batches Roasting hours Blending hours Packaging hours Expected Activity for the Year 1,720 orders 1,778 setups 640 batches 96,882 roasting hours 33,180 blending hours 25,780 packaging hours Expected cost for the Year 516, see 698,300 153.629 950, eee 364, 180 308,400 $ 2,992, 4ee Data regarding the expected production of Kenya Dark and Viet Select coffee are presented below. Expected sales Batch size Setups Purchase order size Roasting time per 100 pounds Blending time per 100 pounds Packaging time per 100 pounds Kenya Dark 1ee, see pounds 10, eee pounds 3 per batch 20, see pounds 1.5 roasting hours 0.5 blending hours 8.3 packaging hours Viet Select 3,880 pounds 688 pounds 3 per batch 600 pounds 1.5 roasting hours 9.5 blending hours 0.3 packaging hours Required: 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 18 Required 2A Required 2B Required 20 Using the activity-based absorption costing approach, compute the amount of manufacturing overhead cost per pound of Kenya Dark coffee and Viet Select coffee. (Round your answers to 2 decimal places.) Kenya Dark Viet Select Manufacturing overhead cost per pound Java Source, Inc., (JSI) buys coffee beans from around the world and roasts, blends, and packages them for resale. Some of JSI's coffees are very popular and sell in large volumes, while a few of the newer blends sell in very low volumes. JSI prices its coffees at manufacturing cost plus a markup of 25%. For the coming year, JSI's budget includes estimated manufacturing overhead cost of $2.992.400.JSI assigns manufacturing overhead to products on the basis of direct labor-hours. The expected direct labor cost totals $576.000, which represents 48.000 hours of direct labor time. The expected costs for direct materials and direct labor for one-pound bags of two of the company's coffee products appear below. Direct materials Direct labor (0.825 hours per bag) Kenya Dark Viet Select $ 4.68 $ 3.30 $ 0.30 $ 9.30 JSI's controller believes that the company's traditional costing system may be providing misleading cost information. To determine whether or not this is correct, the controller has prepared an analysis of the year's expected manufacturing overhead costs, as shown in the following table: Activity Cost Pool Purchasing Material handling Quality control Roasting Blending Packaging Total manufacturing overhead cost Activity Measure Purchase orders Number of setups Number of batches Roasting hours Blending hours Packaging hours Expected Activity for the Year 1,72e orders 1.72e setups 640 batches 96,000 roasting hours 33,18e blending hours 25,780 packaging hours Expected cost for the Year $ 516,000 699, 300 153.6ee 968, see 354, les 308,400 $ 2,992,400 Data regarding the expected production of Kenya Dark and Viet Select coffee are presented below. Expected sales Batch size Setups Purchase order size Roasting time per 100 pounds Blending time per 100 pounds Packaging time per 100 pounds Kenya Dark 100,000 pounds 10, eee pounds 3 per batch 20, see pounds 1.5 roasting hours 0.5 blending hours 8.3 packaging hours Viet Select 3,000 pounds 68e pounds 3 per batch 688 pounds 1.5 roasting hours 8.5 blending hours 0.3 packaging hours Required: 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 20 Using the activity-based absorption costing approach, determine the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee. (Round your intermediate calculations and final answers to 2 decimal places.) Kenya Dark Viet Select Unit product cost of one pound