Kahlo's Cakes uses activity-based costing. Kendra tracks the following activities and costs: Activity Cost Activity Base Mixing $9,600 400 mixing hours Baking $8,250 1,100 baked goods Packaging $4,950 550 orders What cost would Kahlo estimate for 1 order of 4 baked goods if she estimates that it will take 6 mixing hours?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
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Kahlo's Cakes uses activity-based costing. Kendra tracks the following
activities and costs:
Activity Cost Activity Base
Mixing $9,600 400 mixing hours
Baking $8,250 1,100 baked goods
Packaging $4,950 550 orders
What cost would Kahlo estimate for 1 order of 4 baked goods if she
estimates that it will take 6 mixing hours?
Transcribed Image Text:Kahlo's Cakes uses activity-based costing. Kendra tracks the following activities and costs: Activity Cost Activity Base Mixing $9,600 400 mixing hours Baking $8,250 1,100 baked goods Packaging $4,950 550 orders What cost would Kahlo estimate for 1 order of 4 baked goods if she estimates that it will take 6 mixing hours?
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