Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computesthe manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. Thefollowing data are from the projections of Kate's Kale Chips for the upcoming quarter:SalesProductionVariable manufacturing cost per bagSales and distribution costs per bagTotal fixed manufacturing overheadFixed administrative overhead1. Product cost under full costing2.Projections22,500 bags24,500 bags$2.50$ 0.40Required: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.)Product cost under variable costing$ 49,000$ 20,500per bagper bag

The cost of manufacturing is directly correlated with the type of cost accounting known as variable…

Answered: Kate's Kale Chips produces a healthy…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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