Question

Score: 0 of 1 pt 2 of 11 (1 complete) HW Score: 5.88%, 1 of 17 pts S4-4 (book/static) Question Help NatureMade Snacks produces different styles of sweet potato chips (ruffled, flat, thick-cut, gourmet) for different corporate customers Compute the activity cost allocation rates for each activity assuming the following total estimated activity for the year: 8,500 preparation hours, 32,000 cooking and draining hours, and 4 million packages (Click the icon to view additional information.) 囲(Click the icon to view the additional information and data.) Begin by determining the formula for calculating activity cost allocation rate, then calculate the rates for each activity. (Round the rate to the nearest cent.) Activity cost allocation rate - More Info 1 Data Table Each style of sweet potato chip requires different preparation time, different cooking and draining times (depending on desired fat content), and different packaging (single serving versus bulk). Therefore, NatureMade has decided to try ABC to better capture the manufacturing overhead costs incurred by each style of NatureMade has identified the following activities related to yearly manufacturing overhead costs and cost drivers associated with producing sweet potato chips: Manufacturing Activity Preparation.... Cooking and draining$ 928,000 Cooking and draining time Packaging Overhead Cost Driver $ 510,000 Preparation time Print Done $ 400,000 Units packaged

0 0
Add a comment Improve this question Transcribed image text
Answer #1
under abc costing overhead rate will be computed using the formula -
Cost pool total/Cost driver
Activity Formula
Preparation Preparation manufacturing overhead / number of preparation hr
Cooking and draining Cooking and draining manufacturing overhead / number of cooking and draining hr
Packing Packing manufacturing overhead / unit packed
Computation of activity rate
Cost pool amount Cost driver unit Over head rate Cost driver  
Preparation 510000 8500 $   60.00 per preparation hr
Cooking and draining 928000 32000 $   29.00 per cooking and draining hr
Packing 400000 4000000 $     0.10 per unit packed
Add a comment
Know the answer?
Add Answer to:
Score: 0 of 1 pt 2 of 11 (1 complete) HW Score: 5.88%, 1 of 17...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • NatureMade Snacks just received an order to produce 12,000 single-serving bags of gourmet, fancy-cut, sweet potato...

    NatureMade Snacks just received an order to produce 12,000 single-serving bags of gourmet, fancy-cut, sweet potato chips. The order will require 21 preparation hours and 36 cooking and draining hours. (Click the icon to view the relevant activity rates.) Read the requirements. 1. What is the total amount of manufacturing overhead that should be allocated to this order? Determine the basic formula needed to allocate overhead to this order, then compute the overhead allocated to each activity. Manufacturing overhead allocated...

  • Aunt Dorothy Snacks just received an order to produce 13,000 single-serving bags of gourmet, fancy-cut, sweet...

    Aunt Dorothy Snacks just received an order to produce 13,000 single-serving bags of gourmet, fancy-cut, sweet potato chips. The order will require 16 preparation hours and 31 cooking and draining hours. (Click the icon to view the relevant activity rates.) Read the requirements. 1. What is the total amount of manufacturing overhead that should be allocated to this order? Determine the basic formula needed to allocate overhead to this order, then compute the overhead allocated to each activity. Manufacturing overhead...

  • Homework: Homework 3 - Chapter 4 Save Score: 3.11 of 4 pts 1 of 3 (1...

    Homework: Homework 3 - Chapter 4 Save Score: 3.11 of 4 pts 1 of 3 (1 complete) HW Score: 31.11%, 3.11 of... % S4-5 (similar to) Question Help o Uncle Joe Snacks just received an order to produce 16,000 single-serving bags of gourmet, fancy-cut, sweet potato chips. The order will require 20 preparation hours and 35 cooking and draining hours. (Click the icon to view the relevant activity rates.) Read the requirements 1. What is the total amount of manufacturing...

  • Homework: Chapters 3 and 4 Score: 0 of 1 pt S4-5 (book/static) 37 of 43 o...

    Homework: Chapters 3 and 4 Score: 0 of 1 pt S4-5 (book/static) 37 of 43 o completa HW Score: 86.22%, 37.07 Question Herg cooking and draining hours NatureMade Snacks received an order to produce 12.000 single-serving bags of gourmet foecut, sweet potato chips. The order will require 21 preparation tours and Cho the con to view the activity ) 1. What is the to t ale bewood Reference Requirements Activity Cont Allocation Rate y Use the 1. What provided to...

  • Score: 0 of 1 pt 6 of 9 (0 complete) HW Score: 0%, 0 of 10...

    Score: 0 of 1 pt 6 of 9 (0 complete) HW Score: 0%, 0 of 10 pts E4-21A (similar to) E Question Help Santry Industries manufactures a variety of custom products. The company has traditionally used a Expected usage and costs for manufacturing overhead activities for the upcoming year are as plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products.The company estimates that it will incur $1,490,000 in total manufacturing(Click the icon to view...

  • HUMEWORR! Chapter 24 Homework Save Score: 1.5 of 18 pts 1 of 2 (1 complete) HW...

    HUMEWORR! Chapter 24 Homework Save Score: 1.5 of 18 pts 1 of 2 (1 complete) HW Score: 4.17%, 1.5 of 36 pts E24-17 (similar to) Question Help Empire Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2018: (Click the loon to view the allocation rates.) Empire produces two wheelnim models: standard and deluxe. Expected data for 2018 are as follows: (Click the icon to view the expected data) The company expects to produce 500 units...

  • Homework: Chapter 19 Homework Save Score: 0.53 of 1 pt 3 of 5 (3 complete) HW...

    Homework: Chapter 19 Homework Save Score: 0.53 of 1 pt 3 of 5 (3 complete) HW Score: 24.37%, 122 of 5 pts P19-35A (similar to) Question Help Alen, Inc. manufactures bookcases and uses an activity based costing system. Allen's activity areas and related data follow: (Click the icon to view the activity areas and related data) Allen produced two styles of bookcases in October: the standard bookcase and an unfinished bookcase, which has fewer parts and requires no finishing. The...

  • Score: 0 of 1 pt < 2 of 6 (5 complete) HW Score: 53.89%, 3.23 of...

    Score: 0 of 1 pt < 2 of 6 (5 complete) HW Score: 53.89%, 3.23 of 6 pts X S12A-15 (similar to) Question Help Liam is entering high school and is determined to save money for college. Liam feels he can save $1,000 each year for the next four years from his part-time job. If Liam is able to invest at 4%, how much will he have when he starts college? (Click the icon to view Present Value of $1...

  • Score: 0 of 1 pt 9 of 10 (0 complete) HW Score: 0%, 0 of 10...

    Score: 0 of 1 pt 9 of 10 (0 complete) HW Score: 0%, 0 of 10 pts E3-28A (similar to) LCDs For You produces screens for use in various smartphones. The company reports the following information at Deoember 31. LCDs For You began operations on January 31 earlier that same year (Click the icon to view additional information.) Read the recuirements Question Help i More Info Requirement 1. What is the cost of direct materials used? The cost of direct...

  • gested S Score: 0 of 3 pts 3 of 3 (2 complete) HW Score: 62.22%, 5.6...

    gested S Score: 0 of 3 pts 3 of 3 (2 complete) HW Score: 62.22%, 5.6 of 9 p count P4-43A (similar to) Question Help Wallace Pharmaceuticals manufactures an over-the-counter allergy medication Wallace's controller, Susan Driessler, has just returned from a conference on ABC called Breathe. Wallace is trying to win market share from Sudafed and Tylenol. She asks Kevin Yeng, supervisor of the Breathe product line, to help her develop The company has developed several different Breathe products tailored...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT