1.
The cost per pound of potato cuts.
Given information:
Raw potatoes is 1,800,000 pounds
Process potatoes is 1,600,000 pounds
Cost of direct material is $231,000
Cost of production support is $1,689,000
Number of unit processed is 1,600,000 pounds.
2.
The cost per unit of the cost driver in the case of (a) cleaning (b) cutting and (c) packaging activity areas
Given information:
Cost driver for cleaning activities is potatoes raw pound.
Cost driver for cutting activities is potatoes cut per hours.
Cost driver for packing activities is potatoes cut per packing hours.
3.
The cost per unit pound of (a) retail potatoes and (b) institutional potatoes
Given information:
Direct material cost of retail potatoes cut is $207,900 and institutional potatoes cut is $23,100.
Direct Packing cost of retail potatoes cut is $190,000 and institutional potatoes cut is $9,000.
4.
The cost difference between the simple costing system and activity based costing and the use of activity based costing for better decision making.

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Chapter 5 Solutions
COST ACCT-W/ACCESS >C< NON-MAJORS
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