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Pack produces different styles of potato chips (ruffled, flat, thick-cut, and gourmet) for different corporate customers. Each style of potato chip requires different preparation times,
Pack produces different styles of potato chips (ruffled, flat, thick-cut, and gourmet) for different corporate customers. Each style of potato chip requires different preparation times, different cooking and draining times (depending on desired fat content), and different packaging (single serving versus bulk). Therefore, Pack has decided to use ABC costing to better capture the manufacturing overhead costs incurred by each style of chip. Pack just received an order to produce 13,000 single-serving bags of gourmet, fancy-cut, low-fat potato chips. The order will require 23 preparation hours and 35 cooking and draining hours. The cost allocation rate for each activity is provided in the accompanying table. E (Click the icon to view the relevant activity rates.) Requirements 1. What is the total amount of MOH that should be allocated to this order? 2. How much MOH should be assigned to each bag? 3. What other costs will Pack need to consider to determine the total manufacturing costs of this order? R. Determine the basic formula needed to allocate overhead to this order, then compute the overhead allocated to each activity. (Round all intermediary calculations to two decimal places as needed. Round your final answers to the nearest whole dollar.) Allocated manufacturing Activity cost allocation rate Cost driver (actual use) = overhead = Preparation Cooking/draining Packaging = Activity Rates x = The total amount of manufacturing overhead assigned to this order is $ Activity Cost Allocation Rate 42.00 Base Units $ per hour of preparation Requirement 2. How much MOH should be assigned to each bag? Determine the formula needed to calculate manufacturing overhead to be assigned to each bag, and then compute the manufacturing overhead per bag Manufacturing overhead per unit Activity Preparation Cooking and draining Packaging $ 27.00 per hour of cook and drain per unit packaged $ 0.08 Requirement 3. What other costs will Pack need to consider to determine the total manufacturing costs of this order? In addition to the costs above, Pack needs to consider Print Done Choose from any list or enter any number in the input fields and then continue to the next
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