Question

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 compute the following: amount of monengradashould be wild A Base Unite per hour of preparation per hour of sing and draining Good ng $ Print Dore Choose from any drop down and c heck Answer 5 g C N Check Antwer MacBook Pro

Answer 1

Answer to Requirement 1:

Manufacturing overhead allocated = Activity cost allocation rate * Cost driver

Preparation:

Manufacturing overhead allocated = $60.00 * 21
Manufacturing overhead allocated = $1,260

Cooking and Draining:

Manufacturing overhead allocated = $29.00 * 36
Manufacturing overhead allocated = $1,044

Packaging:

Manufacturing overhead allocated = $0.10 * 12,000
Manufacturing overhead allocated = $1,200

Total manufacturing overhead allocated = Manufacturing overhead allocated to Preparation + Manufacturing overhead allocated to Cooking and Draining + Manufacturing overhead allocated to Packaging
Total manufacturing overhead allocated = $1,260 + $1,044 + $1,200
Total manufacturing overhead allocated = $3,504

Answer to Requirement 2:

Manufacturing overhead assigned per bag = Total manufacturing overhead allocated / Number of bags produced
Manufacturing overhead assigned per bag = $3,504 / 12,000
Manufacturing overhead assigned per bag = $0.292

Answer to Requirement 3:

The company should consider direct materials cost and direct labor cost to determine the total manufacturing costs of this order.