Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Total Activity Activity Cost Cost Driver Standard Extra Virgin Washing, Pressing & Filtering (WPF) $1,952, eee Washing, Pressing, and Filtering hours 49,000 hours 111,800 hours Bottling $1,317,500 Number of bottles 340, eee bottles 85,000 bottles Additional information about each grade of olive oil is as follows: Grade Standard Extra Virgin Sales Revenue $5,280,000 $3,100,000 Direct Direct Materials Labor Costs Costs $900,000 $375,000 $600,000 $150,000 Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the activity rate for each cost pool. (Round your answers to 2 decimal places.) Activity Washing. Prossing & Fiering (WPF) Bottling Cost Pool per hour per botte Activity Washing, Pressing & Filtering (WPF) Bottling Activity Cost Cost Driver $1,952, 600 Washing, Pressing, and Filtering hours $1,317,500 Number of bottles Standard 49,eee hours 340, eee bottles Extra Virgin 111,000 hours 85,000 bottle Additional information about each grade of olive oil is as follows: Grade Standard Extra Virgin Direct Sales Materials Revenue Costs $5,200,eee $900, 800 $3,100,000 $600,000 Direct Labor Costs $375,000 $150, eee Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the activity rates, determine the total amount of overhead assigned to eaqn product. (Round activity rates to 2 decimal places.) Standard Overhead Activity for Standard assigned to Standard Extra Virgin Overhead Activity for assigned to Extra Virgin Extra Virgin Activity Activity Rate WPF Botting Total Grade Standard Extra Virgin Revenue $5,200,000 $3,100,000 Costs Costs $900,000 $375,000 $600,000 $150,000 Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine total manufacturing cost for each product. Standard Extra Virgin Direct Materials Direct Labor ABC Overhead Total manufacturing costs y! UI Onl is dS TollOWS. Grade Standard Extra Virgin Sales Revenue $5,200,000 $3,100,000 Direct Materials Costs $900,000 $600,000 Direct Labor Costs $375,000 $150,000 Required: 1. Calculate the activity rate for each cost pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the gross profit for each product. Standard Extra Virgin Revenue Cost of goods sold Gross Profit
