Question 2 different tynes of nuts in one-nound hags through catalogs and gourmet shons. The cempany's maicr cest is that of the raw nuts: owever, the predominantly automated roasting and nacking proresses.consume aSubstantial amount of manufacturing overhead cost. The company uses relatively little direct labor. f 40%. If the resulting Some f Waterway's nuts are very popular and sell in large volumes, but a few of the newer types sell in very low sales volumes. Waterway's prices its nuts at cost (including overhead) plus a markup certain nuts are significantly higher than the market price, adjustments are made. Although the company competes primarily on the quality of its products, customers are price conscious prices Data for the annual budget include manufacturing overhead of $5,871,070, allocated on the basis of each product's direct labor cost. The annual budqeted direct labor cost totals $1,231,000. Based on the sales budget and raw materials standards, purchases and use of raw materials are expected to total $9,020,000 for the year. The unit costs of a one-pound bag of two f the company's products follows. Cashews Chestnuts $4.00 Raw materials $3.08 Direct labor 0.33 0.33 Waterway's controller believes that the traditional costing system may be providing misleading cost information, so she has developed the following analysis of the annual budgeted manufacturing costs. Bu d Cost Activity Activity Cost Driver Purchasing Purchase orders 11,430 $1,223,010 Material handling Quality control 1.850 Number of setups 1,544,750 Number of batches 610 295,850 Roasting Roasting hours 95,670 1,722,060 Seasoning hours Seasoning 33.910 610,380 Packaging Packaging hours 26.390 475,020 $5,871,070 Total manufacturing overhead cost f cashews and chestnuts follow. All raw materials purchased during the period are processed and all nuts produced are sold within the period Data regarding the annual production Chestnuts Cashews Expected sales 119,600 lbs 2,000 lbs. 1,000 lbs. Batch size 10,000 lbs Setups 4 per batch 4 per batch 50 lbs Purchase order size 2,500 lbs. 1.00 hour/10 Roasting time 1.0 hour/100 bs. me Packaging time 0.2 hour/100 lbs. 0.2 hour/100 Ibs. calculate the cost and selling price of one pound f cashews and one pound of chestnuts. (Round predetermined overhead rate to 0 decimal places, e.g. 25% and final answers to 2 delaal naces e a 15.25.) Cashews Chestnuts lb. s lb Cost /ib.e lb Selling Price LINK TO T LINK TO VIDEO LINK LINK TO VIDEO Calculate ABC rates. Cost Pool Activity Rate Purchasing /purchase order Material handling /setup Quality control /batch /roasting hour Roasting Seasoning /seasoning hour /packaging hour Packaging S LINK TO TEXT LINK TO VIDEO LINK LINK TO VIDEO cashews and one pound of chestnuts. (Round all rates and final answers to 2 decmial places, Using an activity-based costing approach and the information provided, calculate the cost and selling price e.g. 15.25.) f one pound Cashews Chestnuts Ib Ib. Cost Ib.e lb Selling Price Click if you would like to Show Work for this question: Open Show Work