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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. Estimated Overhead Activity Cost Pools Ordering and receiving Food processing Packaging $80,934 479,880 1,485,180 Estimated Use of Cost Drivers per Activity 12,300 orders 62,000 machine hours 446,000 labor hours For 2020, the company had 10,200 orders and used 50,400 machine hours, and labor hours totaled 504,000. 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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