Question

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

Save for Later

Attempts: 0 of 1 used

Submit Answer

Part 2

What is the total overhead applied?

Total overhead applied

$

Answer 1