Problem 3: Activity Based Costing (15 points) Andersen Grocery is trying to calculate costs in several departments. They have the following cost data available: Produce Frozen Del Total # of Items Sold 25.000 225,000 2500 312.500 # of Purchase Orders 300 70000 1500 # of Deliveries 250 1,500 750 2.500 Hours of Shell Time 1.000 5,000 4.000 10.000 Currently overhead costs are allocated based on the number of items sold (one cost pool). Overhead costs are as follows: Ordering Costs: $50,000 Delivery Costs $200,000 Shelf Stocking Costs $150.000 Total Budgeted Overhead Costs $400,000 Required Allocate the total overhead among the three departments using one pool - using number of items sold. Allocate the overhead between the three departments using ABC costing as follows: Allocate ordering costs based on the number of purchase orders Allocate delivery costs based on the number of deliveries Allocate shelf stocking costs based on the number of hours of shelf stocking Overhead Rate - One Pool (of tenssi) Overhead Rate - Ordering Costs Overhead Rate-Delivery Couts Overhead Rate - Sher Stocking Costs Allocation of Overhead Produce Frozen Del Total location of Overhead - One Pool Allocation at Ordering costs Allocation of Delivery Costs Allocation of shell Stocking Costs Total Overhead Costs