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The Ridgewood Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many
The Ridgewood Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many other types of bakery items. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to its strawberry cheesecake and the ABC cost pools: Strawberry Cheesecake: Annual production Direct materials per unit Direct labor per unit 23,400 units $12.0 $2.40 Cost Cost Driver $86,400 Cost Pool Materials ordering Materials inspection Equipment setup Quality control 88,000 126,000 Number of purchase orders Number of receiving reports Number of setups Number of inspections Direct labor cost 82,800 Other 120,000 Total manufacturing overhead $503,200 Annual activity information related to cost drivers: Cost Pool All Products Strawberry Cheesecake 9.600 orders 120 Materials ordering Materials inspection Equipment setup 440 receiving report 88 3,600 setups 44 180 Quality control 3,600 Inspections Other $2,400,000 direct labor $46,800 Calculate the overhead rate per unit of activity for each of the five cost pools. (Round overhead rate for Other Cost Pool to 2 decimal places, eg. 15.25) Cost Pool Overhead rate Materials ordering per order Materials inspection $ per receiving report Equipment setup per setup Quality control per inspection Other per labor cost e Textbook and Media Calculate the total overhead assigned to the production of the strawberry cheesecake. Overhead assigned to Strawberry Cheesecake eTextbook and Media Calculate the overhead cost per unit for the strawberry cheesecake. (Round answer to 3 decimal places, e.g. 15.254.) Overhead cost per unit Calculate the overhead cost per unit for the strawberry cheesecake. (Round answer to 3 decimal places, eg. 15.254.) Overhead cost $ per unit e Textbook and Media Calculate the total unit cost for the strawberry cheesecake. (Round answer to 3 decimal places, eg. 15.254.) Total cost $ per unit e Textbook and Media Suppose that the Ridgewood Shoppe allocates overhead by a traditional production volume-based method using direct labor dollars as the allocation base and one cost pool. Determine the overhead rate per direct labor dollar and the per unit overhead assigned to the strawberry cheesecake. (Round answers to 3 decimal places, eg. 15.254.) Overhead rate per direct labor dollar Direct labor cost $ per unit Overhead assigned $ per unit
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