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Required information (The following information applies to the questions displayed below.) Assume that a pet food manufacturer is considering adding two types of pet food
Required information (The following information applies to the questions displayed below.) Assume that a pet food manufacturer is considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 0.5 pound cans. The company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity Material handling Storage costs Expected Costs $105,000 $820,000 Cost Driver Number of batches made Weight of finished product Production volume Batches made Dog Food 100,000 units 200 batches Cat Food 200,000 units 150 batches What are the overhead rates used to apply material handling (MH) and storage costs ISC using activity-based rastinn? MH $300/batch; SC $2.73/unit MH $300/batch; SC $ 20/1b. MH $525/batch: SC $.205/unit MH $700/batch: SC $8.20/b. 0 MH $700/batch; SC $.205/b
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