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Mitchell's Soups and More is a family owned business that manufactures and sells dry soup mixes. Over the years, the owners worked hard to create
Mitchell's Soups and More is a family owned business that manufactures and sells dry soup mixes. Over the years, the owners worked hard to create time honoured recipes with unique twist which makes the brand highly recognizable. To assure the quality of its products, the company established its quality assurance department. The annual costs of this department include \\( \\$ 348,000 \\) of fixed costs and \\( \\$ 256,000 \\) of variable costs. For the fiscal 2022, the department estimated the annual budget to include 15,500 inspection hours. Inspections are required by the manufacturing and packaging departments. The manufacturing department budgeted 10,200 inspection hours, whereas the packaging department budgeted for the remaining hours. Required: 1. In July, the manufacturing department used 907 inspection hours and packaging used 453 hours. How much did each department receive in quality assurance costs assuming a single rate is used based on budgeted hours? ( 4 marks) 2. In August, the manufacturing department used 1,035 inspection hours and packaging used 428 hours. How much did each department receive in quality assurance costs assuming a dual-rate is used with budgeted usage for fixed costs and actual usage for variable costs? ( 8 marks) 3. Based on your analysis in part 1 and 2 , which method would you recommend being used? Why
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