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Kates Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead

Kates Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from the projections of Kates Kale Chips for the upcoming quarter:

Projections
Sales 25,000 bags
Production 27,000 bags
Variable manufacturing cost per bag $ 3.00
Sales and distribution costs per bag $ 0.15
Total fixed manufacturing overhead $ 35,100
Fixed administrative overhead $ 23,000

Required:

1. Compute the projected product cost per bag produced under full costing.

2. Compute the projected product cost per bag under variable costing.

(For all requirements, do not round intermediate calculations. Round your answer to 2 decimal places.)

image text in transcribed

1. Product cost under full costing 2. Product cost under variable costing per bag per bag

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