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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
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.
Activity | Total Activity Cost | Cost Driver | Standard | Extra Virgin | |||||||||||||||||
Washing, Pressing & Filtering (WPF) | $ | 1,537,500 | Washing, Pressing, and Filtering hours | 45,000 | hours | 105,000 | hours | ||||||||||||||
Bottling | $ | 412,500 | Number of bottles | 300,000 | bottles | 75,000 | bottles | ||||||||||||||
Additional information about each grade of olive oil is as follows:
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