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Organic Grounds produces two brands of coffee - Star and Bucks The following data are available for May: Cost Drivers: Star Bucks Total # of
Organic Grounds produces two brands of coffee - Star and Bucks | |||||
The following data are available for May: | |||||
Cost Drivers: | Star | Bucks | Total | ||
# of Pounds of Coffee Produced | 5,555 | 22,222 | 27,777 | ||
Equipment Hours | 333 | 444 | 777 | ||
Direct Labor Hours | 111 | 222 | 333 | ||
Star | Bucks | Total | |||
Direct Costs: | 89,898.89 | 79,899.54 | 169,798.43 | ||
Manufacturing Overhead Costs: | 24,244.24 | ||||
Account | |||||
Office Utilities: $1,222.84 related to Labor | |||||
Warehouse Utilities: $14,444.54 related to Equipment | |||||
Supervisor Salaries: $8,576.76 related to Labor | |||||
What will be the total costs of the Star coffee if equipment hours are used as the cost | |||||
driver to allocate the manufacturing overhead costs related to equipment and direct | |||||
labor hours are used as the cost driver to allocate the manufacturing overhead costs | |||||
related to labor? |
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