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Question #1 (9 points): Clucker Chicken uses ABC costing to allocate the manufacturing overhead costs incurred by producing chicken wings. The following activities related
Question #1 (9 points): Clucker Chicken uses ABC costing to allocate the manufacturing overhead costs incurred by producing chicken wings. The following activities related to yearly manufacturing overhead costs and cost drivers have been identified: ACTIVITY MANUFACTURING OVERHEAD Preparation $900,000 COST DRIVER Preparation hours Cooking and draining $1,350,000 Cooking hours $450,000 Number of packages Packaging Total estimated activity for the year: 15,000 preparation hours, 45,000 cooking hours, and 9,000,000 packages. Job 100 requires 10 preparation hours, 20 cooking hours, and 5,000 packages. Required (put your answers in the space of next page): (1) Compute the activity cost allocation rates for each activity. (2) Compute the cost allocated to Job 100 based on ABC costing.
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