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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 $73,800 12,000 orders
Food processing 420,750 55,000 machine hours
Packaging 1,365,000 420,000 labor hours

For 2020, the company had 10,000 orders and used 48,000 machine hours, and labor hours totaled 490,000.

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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