Kate’s Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from the projections of Kate’s Kale Chips for the upcoming quarter: Projections Sales 26,000 bags Production 28,000 bags Variable manufacturing cost per bag $ 3.20 Sales and distribution costs per bag $ 0.25 Total fixed manufacturing overhead $ 42,000 Fixed administrative overhead $ 24,000 Required: 1. Compute the projected product cost per bag produced under full costing. 2. Compute the projected product cost per bag under variable costing. (Round your answers to 2 decimal places.)
Kate’s Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from the projections of Kate’s Kale Chips for the upcoming quarter: Projections Sales 26,000 bags Production 28,000 bags Variable manufacturing cost per bag $ 3.20 Sales and distribution costs per bag $ 0.25 Total fixed manufacturing overhead $ 42,000 Fixed administrative overhead $ 24,000 Required: 1. Compute the projected product cost per bag produced under full costing. 2. Compute the projected product cost per bag under variable costing. (Round your answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kate’s Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing
| Projections | ||
|---|---|---|
| Sales | 26,000 | bags |
| Production | 28,000 | bags |
| Variable |
$ 3.20 | |
| Sales and distribution costs per bag | $ 0.25 | |
| Total fixed manufacturing overhead | $ 42,000 | |
| Fixed administrative overhead | $ 24,000 |
Required:
1. Compute the projected product cost per bag produced under full costing.
2. Compute the projected product cost per bag under variable costing.
(Round your answers to 2 decimal places.)
Please dont provide answer in images thank you
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