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Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for

Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020.

Activity Cost Pools

Estimated Overhead

Estimated Use of Cost Drivers per Activity

Ordering and receiving $80,886 12,200 orders
Food processing 437,760 57,000 machine hours
Packaging 1,975,800 445,000 labor hours

For 2020, the company had 11,900 orders and used 49,100 machine hours, and labor hours totaled 502,000.

Part 1

Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.)

Overhead Rates

Ordering and receiving

$

per order
Food processing

$

per machine hour
Packaging

$

per labor hour

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Part 2

What is the total overhead applied?

Total overhead applied

$

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