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NatureMade Snacks produces different styles of sweet potato chips (ruffled, flat, thick-cut, gourmet) for different corporate customers. (Click the icon to view additional information.) (Click
NatureMade Snacks produces different styles of sweet potato chips (ruffled, flat, thick-cut, gourmet) for different corporate customers. (Click the icon to view additional information.) (Click the icon to view the additional information and data.) Compute the activity cost allocation rates for each activity assuming the following total estimated activity for the year: 8,500 preparation hours, 32,000 cooking and draining hours, and 4 million packages. Begin by determining the formula for calculating activity cost allocation rate, then calculate the rates for each activity. (Round the rate to the nearest cent.) Activity cost allocation rate Each style of sweet potato chip requires different preparation time, different cooking and draining times (depending on desired fat content), and different packaging (single serving versus bulk). Therefore, NatureMade has decided to try ABC to better capture the manufacturing overhead costs incurred by each style of chip. Data table NatureMade has identified the following activities related to yearly manufacturing overhead costs and cost drivers associated with producing sweet potato chips: Activity Cost Driver Preparation time Manufacturing Overhead Preparation.... $ 510,000 Cooking and draining.... $ 928,000 Cooking and draining time Packaging.. $ 400,000 Units packaged
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