Question
Nongshin Company manufactures two types of instant noodlescold spicy noodle and hot super spicy noodle. Nongshin uses activity-based costing system to allocate manufacturing overhead costs.
Nongshin Company manufactures two types of instant noodlescold spicy noodle and hot super spicy noodle. Nongshin uses activity-based costing system to allocate manufacturing overhead costs. The following information is provided for the production of the two product lines:
| Activity | Budgeted overhead costs | Allocation base |
| Frying noodle | $15,000 | Machine hours |
| Sauce manufacturing | $41,000 | Direct labor hours |
| Total overhead costs | $56,000 |
|
|
| Cold Spicy | Hot Super Spicy | Total |
| Direct labor hours | 5,600 | 3,400 | 9,000 |
| Machine hours | 2,000 | 1,000 | 3,000 |
Nongshin plans to produce 160,000 units of cold spicy noodle and 80,000 units of hot super spicy noodle.
Q13. Compute the predetermined overhead allocation rate for frying noodle activity.
| $2/MHr | ||
| $3/MHr | ||
| $4/MHr | ||
| $5/MHr |
Q14. Compute the allocated overhead cost per unit of hot super spicy noodle. Round to the nearest cents.
| $0.22 | ||
| $0.24 | ||
| $0.26 | ||
| $0.28 |
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Financial Accounting For Executives And MBAs
Authors: Paul Simko, James Wallace, Joseph Comprix
5th Edition
1618533665, 9781618533661
