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Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020. Activity Cost Pools Ordering and receiving Food processing Packaging For 2020, the company had 11,900 orders and used 49,100 machine hours, and labor hours totaled 502,000. (a) Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Estimated Estimated Use of Cost Drivers per Activity Overhead $80,886 12,200 orders 437,760 57,000 machine hours 1,975,800 445,000 labor hours Ordering and receiving $ Food processing Packaging eTextbook and Media (A $ $ Overhead Rates per order per machine hour per labor hour

Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020. Activity Cost Pools Ordering and receiving Food processing Packaging For 2020, the company had 11,900 orders and used 49,100 machine hours, and labor hours totaled 502,000. (a) Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Estimated Estimated Use of Cost Drivers per Activity Overhead $80,886 12,200 orders 437,760 57,000 machine hours 1,975,800 445,000 labor hours Ordering and receiving $ Food processing Packaging eTextbook and Media (A $ $ Overhead Rates per order per machine hour per labor hour

FINANCIAL ACCOUNTING
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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(b) Your answer is incorrect. What is the total overhead applied? Total overhead applied $
Transcribed Image Text:(b) Your answer is incorrect. What is the total overhead applied? Total overhead applied $
Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020. Activity Cost Pools Ordering and receiving Food processing Packaging For 2020, the company had 11,900 orders and used 49,100 machine hours, and labor hours totaled 502,000. (a) Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Estimated Estimated Use of Cost Drivers per Activity Overhead $80,886 12,200 orders 437,760 57,000 machine hours 1,975,800 445,000 labor hours Ordering and receiving $ Food processing Packaging eTextbook and Media (A $ $ Overhead Rates per order per machine hour per labor hour
Transcribed Image Text:Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020. Activity Cost Pools Ordering and receiving Food processing Packaging For 2020, the company had 11,900 orders and used 49,100 machine hours, and labor hours totaled 502,000. (a) Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Estimated Estimated Use of Cost Drivers per Activity Overhead $80,886 12,200 orders 437,760 57,000 machine hours 1,975,800 445,000 labor hours Ordering and receiving $ Food processing Packaging eTextbook and Media (A $ $ Overhead Rates per order per machine hour per labor hour
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