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Lionel PTY LTD manufactures 3 types of pizzas: Nut, Bondi, and Italian. The batch size for the pizzas is limited to 1000 pizzas based on
Lionel PTY LTD manufactures 3 types of pizzas: Nut, Bondi, and Italian. The batch size for the pizzas is limited to 1000 pizzas based on the size of the ovens and pizza molds owned by the company Based on budgetary projections, the information listed below is available: NUT Bondi Italian Projected sales in units 500 000 800 000 600 000 PER UNIT data: Selling price 50.80 $0.75 50.60 Direct materials $0.20 50.15 $0.14 Direct labour $0.04 $0.02 50.02 Hours used up per 1000-unit batch: Direct labour hours 2 H 1 Oven hours 1 1 Packaging hours 0.5 0.5 0.5 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Direct labour 2400 hours Oven $210 000 1900 oven hours Packaging $150 000 950 packaging hours $360 000 Required: a. Determine the activity-cost-driver rate for packaging costs
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