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Question 2 (5 points) Woller Meat Packing produces frozen hamburgers and sausages. During 2020, the company incurred $590,000 of overhead. Overhead costs and their related
Question 2 (5 points) Woller Meat Packing produces frozen hamburgers and sausages. During 2020, the company incurred $590,000 of overhead. Overhead costs and their related cost drivers are shown in the tables below. If Woller uses activity-based costing, what are the overhead rates for each type of overhead cost (Utilities, Clean-up, Repairs & maintenance)? OH Pool Utilities Clean-up Repair & maintenance Total OH Cost Cost Driver Hamburgers Sausages $ 320,000 # of kWh used 4,000 2,000 $ 170,000 # of gal. of cleaner 7,000 3,000 $ 100,000 # of DLHS 8,000 11,000 $ 590,000 Hamburgers Sausages Selling price / unit $ 1.00 $ 1.20 Direct material cost/ units 0.30 $ 0.35 Direct labor cost / unit $ 0.25 $ 0.30 Number of units produced 2,000,000 1,600,000 $53.33 $17.00 $5.26 $0.16 $0.09 $0.05 $64.00 $18.00 $5.00 $0.16 $0.09 $0.05 $50.00 $16.04 $4.72
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