Data for the next 2 questions: Aunt's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projection the information listed below is available: Total budgeted manufacturing overhead costs Total budgeted direct labor hours Projected sales in units PER UNIT data: Selling price Direct materials cost Direct labor cost $360,000 ? (you figure out based on information below) Hours per 1000-unit batch: Direct labor hours Oven hours Packaging hours Macaroon 500,000 $0.80 $0.20 $0.04 2 1 0.5 Sugar Buttercream 800,000 600,000 $0.75 $0.15 $0.02 1 1 0.5 $0.60 $0.14 $0.02 1 0.5
Data for the next 2 questions: Aunt's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projection the information listed below is available: Total budgeted manufacturing overhead costs Total budgeted direct labor hours Projected sales in units PER UNIT data: Selling price Direct materials cost Direct labor cost $360,000 ? (you figure out based on information below) Hours per 1000-unit batch: Direct labor hours Oven hours Packaging hours Macaroon 500,000 $0.80 $0.20 $0.04 2 1 0.5 Sugar Buttercream 800,000 600,000 $0.75 $0.15 $0.02 1 1 0.5 $0.60 $0.14 $0.02 1 0.5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Having trouble finding the total Direct labor hours. My teacher showed us but don't know where he was getting his numbers. Need help with question 8. Thanks

Transcribed Image Text:Total overhead costs and activity levels for the year are estimated as follows:
Overhead costs
$210,000
Activity levels
1,900 oven hours
$150,000
950 packaging hours
$360,000
Activity
Oven
Packaging
8. If factory overhead cost is allocated based upon a plant-wide overhead rate based on direct labor hours,
determine cost of production per unit (not per batch) of Macaroon, Sugar, and Buttercream, respectively.
dire Cost per Unit
Macaroon Cookie Sugar Cookie
$ units of Produc$7 and 100
Buttercream Cookie
$

Transcribed Image Text:Data for the next 2 questions: Aunt's Fancy Cookie Company manufactures and sells three flavors of
cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies
based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections,
the information listed below is available:
Total budgeted manufacturing overhead costs
Total budgeted direct labor hours
Projected sales in units
PER UNIT data:
Selling price
Direct materials cost
Direct labor cost
$360,000
? (you figure out based on information below)
Hours per 1000-unit batch:
Direct labor hours
Oven hours
Packaging hours
Macaroon
500,000
$0.80
$0.20
$0.04
2
1
0.5
Sugar Buttercream
800,000 600,000
$0.75
$0.15
$0.02
1
1
0.5
$0.60
$0.14
$0.02
1
1
0.5
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