1) | Plantwide overhead rate | |||||||||||||||
Estimated overhead/total cases | ||||||||||||||||
578250/120,000 | ||||||||||||||||
4.82 | ||||||||||||||||
plantwide overhead rate | $4.82 | per case | ||||||||||||||
total cost per unit | ||||||||||||||||
2) | Extra Fine | 10.82 | ||||||||||||||
Family Style | 9.82 | |||||||||||||||
3) | Extra Fine | profit | 7.18 | |||||||||||||
Family Style | loss | -0.82 | ||||||||||||||
(a) | (b) | c=a/b | Extra fine | e=c*d | Family style | g=c*f | ||||||||||
overhead | Avtivity Driver | Activity rate | Activity Drivers | overhead | Activity Drivers | overhead | ||||||||||
4) | Activity | cost | (d) | assinged | (f) | assinged | ||||||||||
Mixing & cooking | 15,100 | 1,000 | machine hours | 15.1 | per machine hour | 300 | 4530 | 700 | 10570 | |||||||
product testing | 112,600 | 600 | Batches | 187.6667 | per batch | 210 | 39410 | 390 | 73190 | |||||||
Machine Calibration | 255,000 | 500 | production run | 510 | per production run | 210 | 107100 | 290 | 147900 | |||||||
Labeling & Defects | 19,500 | 130,000 | cases of output | 0.15 | per case | 21000 | 3150 | 109,000 | 16350 | |||||||
Recipe formulation | 91,000 | 50 | Focus groups | 1820 | per focus group | 32 | 58240 | 18 | 32760 | |||||||
heat,light and water | 28,000 | 1,000 | machine hours | 28 | per machine hour | 300 | 8400 | 700 | 19600 | |||||||
Material handling | 66,000 | 8 | container type | 8250 | per container type | 7 | 57750 | 1 | 8250 | |||||||
587,200 | total OH cost assign | 278580 | total OH cost assign | 308620 | ||||||||||||
total units produced | 21,000 | total units produced | 109,000 | |||||||||||||
oh cost per unit | 13.27 | oh cost per unit | 2.83 | |||||||||||||
Extra | Family | |||||||||||||||
fine | Style | |||||||||||||||
Direct materials & direct labor | 4.00 | 3.00 | ||||||||||||||
overhead | 13.27 | 2.83 | ||||||||||||||
tota cost/case | 17.27 | 5.83 | ||||||||||||||
5) | Extra Fine | loss | -2.27 | (15-17.27) | ||||||||||||
Family Style | profit | 0.17 | (6-5.83) | |||||||||||||
HOW DO I CALCULATE? Sara's Salsa Company produces its condiments in two types: Extra Fine for...
Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company's production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,500 Machine hours 1,500 Cooking 11,250 Machine hours 1,500 Product testing 112.500 Batches 600 $ 128, 250 Department 2 Machine...
Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities overhead costs, and drivers associated with these two manufacturing processes and the company's production support activities follow. Overhead Process Activity cost Driver Quantity Department Mixing $ 6,000 1 Machine hours 2,400 Cooking 10,800 Machine hours 2.400 Product testing 114,000 Batches 75e $130,00 Department Machine $325,000 Production 650...
HOW DO I CALCULATE? Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company's production support activities follow. Process Department 1 Activity Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 1,000 1,000 600 Department 2 Machine calibration Labeling Defects Overhead cost...
Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company's production support activities follow. Process Department 1 Activity Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 2,600 2,600 1,000 Department 2 Machine calibration Labeling Defects Overhead cost $ 6,200 12,000 114,200...
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 5,300 Machine hours 1,700 Cooking 10,000 Machine hours 1,700 Product testing 113,300 Batches 550 $ 128,600 Department 2 Machine calibration...
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,500 Machine hours 1,500 Cooking 11,250 Machine hours 1,500 Product testing 112,500 Batches 600 $ 128,250 Department 2 Machine calibration...
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,500 Machine hours 1,500 Cooking 11,250 Machine hours 1,500 Product testing 112,500 Batches 600 $ 128,250 Department 2 Machine calibration...
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 6,000 Machine hours 2,400 Cooking 10,800 Machine hours 2,400 Product testing 114,000 Batches 750 $ 130,800 Department 2 Machine calibration...
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,600 Machine hours 2,700 Cooking 11,600 Machine hours 2,700 Product testing 114,300 Batches 600 $ 130,500 Department 2 Machine calibration...
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow. Process Activity Overhead cost Driver Quantity Department 1 Mixing $ 4,800 Machine hours 1,200 Cooking 11,100 Machine hours 1,200 Product testing 112,800 Batches 750 $ 128,700 Department 2 Machine calibration...