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Premium Pizza, Inc. is in the process of documenting all their costs using Activity-Based Costing (ABC). Premium specializes in unique sauces, and they have assigned
Premium Pizza, Inc. is in the process of documenting all their costs using Activity-Based Costing (ABC). Premium specializes in unique sauces, and they have assigned the following Manufacturing Overhead (MOH) costs to their key activities: Moving and Sorting (150 pounds moved), $32,000; Quality Control (800 inspections completed), $22,400; and Cleaning/Maintenance (2,050 cleaning/maintenance hours) $16,820. Activity and Cost Driver Move and sort ingredients (# of pounds moved) Quality control (# of inspections) Cleaning and maintenance (# of hours) O $10,917.50 O $16,100.00 O $26,217.50 Red Sauce White Sauce O $19,199.70 90 They bottled a total of 440 red sauce units and 336 white sauce units during the year. How much of the quality control MOH would be allocated to red sauce units? 575 1,375 60 225 675
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