Please do not give image format and explanation Almonds R Us (ARU) processes and sells almonds. ARU buys almonds from California and roasts, seasons, and packages them for resale. Currently the firm offers 2 different types of almonds to gourmet shops in one-poundbags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process.ARU prices its nuts at full product cost, including allocated overhead, plus a markup of 30%.Data for the current budget include factory overhead of $3,100,500, which has been allocated by its current costing system on the basis of each product's direct labor cost. The budgeted direct labor cost for the current yeartotals $600,000. The firm budgeted $6,000,000 for purchases and use of direct materials (mostly raw almonds).The budgeted direct costs for one-pound bags of two of the company's almond products are as follows:Salted Sugar RoastedDirect materials $4.10Direct labor$3.200.35Analysis of the current year's budgeted factory overhead costs is as follows:Cost DriverBudgeted Activity Budgeted CostPurchase orders1,15817Setups1,765Batches720Roasting-hours96,116Seasoning-hours33,600Packaging-hours26,000Data regarding the current year's production of two of its lines, Salted and Sugar Roasted, follow. There is no beginning or ending direct materials inventory for either of these nut styles.Sugar Roasted2,000 pounds500 pounds3 per batch500 pounds1 hour per 100 pounds0.5 hour per 100 pounds0.1 hour per 100 pounds0.35ActivityPurchasingMaterials handlingQuality controlRoastingSeasoningPackagingTotal factory overhead costSaltedBudgeted salesBatch size100,000 pounds10,000 pounds3 per batchSetupsPurchase order size 20,000 poundsRoasting timeSeasoning timePackaging time1 hour per 100 pounds0.5 hour per 100 pounds0.1 hour per 100 pounds1. Using ARU's current product costing system,$579,000738,600195,840961,160316,500309,400$3,100,500a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver.b. Determine the full product costs and selling prices of one pound of Salted almonds and one pound of Sugar Roasted almonds.2. Using an activity-based costing approach, develop a new product cost for one pound of Salted almonds and one pound of Sugar Roasted almonds. Allocate all overhead costs to the 100,000 pounds of Salted andthe 2,000 pounds of Sugar Roasted.

Activity-based costing is a costing approach in which a company's activities are identified and the…

Almonds R Us (ARU) processes and sells almonds. ARU buys almonds from California and roasts, seasons, and packages them for resale. Currently the firm offers 2 different types of almonds to gourmet shops in one-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. ARU prices its nuts at full product cost, including allocated overhead, plus a markup of 30%. Data for the current budget include factory overhead of $3,100,500, which has been allocated by its current costing system on the basis of each product's direct labor cost. The budgeted direct labor cost for the current year totals $600,000. The firm budgeted $6,000,000 for purchases and use of direct materials (mostly raw almonds). The budgeted direct costs for one-pound bags of two of the company's almond products are as follows: Salted Sugar Roasted $3.20 0.35 Direct materials $4.10 Direct labor 0.35 Analysis of the current year's budgeted factory overhead costs is as follows: Budgeted Activity 1,158 Activity Purchasing Materials handling Quality control Roasting Seasoning Packaging Total factory overhead cost Cost Driver Purchase orders Setups Batches Roasting-hours Seasoning-hours Packaging-hours Salted 100,000 pounds 10,000 pounds 3 per batch Budgeted sales Batch size Setups Purchase order size 20,000 pounds Roasting time Seasoning time Packaging time Data regarding the current year's production of two of its lines, Salted and Sugar Roasted, follow. There is no beginning or ending direct materials inventory for either of these nut styles. Sugar Roasted 2,000 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds 1,765 720 96,116 33,600 26,000 1. Using ARU's current product costing system, Budgeted Cost $579,000 738,600 195,840 961,160 316,500 309,400 $3,100,500 500 pounds 3 per batch 500 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver. b. Determine the full product costs and selling prices of one pound of Salted almonds and one pound of Sugar Roasted almonds. 2. Using an activity-based costing approach, develop a new product cost for one pound of Salted almonds and one pound of Sugar Roasted almonds. Allocate all overhead costs to the 100,000 pounds of Salted and the 2,000 pounds of Sugar Roasted.