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Kathie's Cupcakes - use the following information to answer this question: Kathie's Cupcakes bakes standard and premium cupcakes and sells them in bulk to food
Kathie's Cupcakes - use the following information to answer this question: Kathie's Cupcakes bakes standard and premium cupcakes and sells them in bulk to food retailers and restaurant chains. Last year, the company incurred $350,000 in overhead costs. After implementing activity-based-costing (ABC), the company's controller identified the following information: Activity. Allocation Base Proportion of Overhead Cost Purchasing Number of Purchase Orders 30% Processing Number of Units 50% Sales Number of Sales Orders 20% The number of activities for standard and premium cupcakes are as follows: Standard Premium Number of Purchase Orders 10,000 5,000 Number of Units 300,000 200,000 Number of Sales Orders 3,000 4,000 What is the overhead rate for the purchasing activity? Select one: a. $23.33 per purchase order b. $15.00 per purchase order c. $ 7.00 per purchase order d. $11.67 per purchase order Kathie's Cupcakes - use the following information to answer this question: Kathie's Cupcakes bakes standard and premium cupcakes and sells them in bulk to food retailers and restaurant chains. Last year, the company incurred $350,000 in overhead costs. After implementing activity-based-costing (ABC), the company's controller identified the following information: Activity Allocation Base Proportion of Overhead Cost Purchasing Number of Purchase Orders 30% Processing Number of Units 50% Sales Number of Sales Orders 20% The number of activities for standard and premium cupcakes are as follows: Standard Premium Number of Purchase Orders 10,000 5,000 Number of Units 300,000 200,000 Number of Sales Orders 3,000 4,000 If a single sales order for premium cupcakes requires 2 purchase orders for a total of 300 cupcakes (units), how much overhead should be assigned to that order? Select one: a $105.00 b. $119.00 c. $129.00 d. $132.00
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