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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 Estimated Overhead Estimated Use of Cost Drivers per Activity Ordering and receiving $89,886 14,200 orders Food processing 474,925 60,500 machine hours Packaging 1,574,540 421,000 labor hours For 2020, the company had 11,400 orders and used 50,300 machine hours, and labor hours totaled 506,000. Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Ordering and receiving $ per order Food processing $ per machine hour Packaging $ per labor hour What is the total overhead applied? Total overhead applied $ Click if you would like to Show Work for this question
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 Estimated Overhead Estimated Use of Cost Drivers per Activity Ordering and receiving $89,886 14,200 orders Food processing 474,925 60,500 machine hours Packaging 1,574,540 421,000 labor hours For 2020, the company had 11,400 orders and used 50,300 machine hours, and labor hours totaled 506,000. Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Ordering and receiving $ per order Food processing $ per machine hour Packaging $ per labor hour What is the total overhead applied? Total overhead applied $ Click if you would like to Show Work for this question
Answer:Overhead RatesOrdering and receiving $ 6.33 per orderFood processing $ 7.85 per machine hourPackaging $ 3.73 per labor hourTotal overhead applied $ 2354055Explanation:Activity Estimated Estimated Use ofCost Pools Overhead Cost Drivers per ActivityOrdering and receiving $89,886 14,200 ordersFood processing 474,925 60,500 machine hoursPackaging 1,574,540 421,000 labor hoursFor 2020, the company had 11,400 orders and used 50,300 machine hours, and labor hours totaled 506,000Overhead RatesOrdering and receiving $89,886/14,200 order = $ 6.33 per orderFood processing $ 474,925 / 60,500 machine hour = $7.85 per machine hourPackaging $ 1,574,540/ 421,000 labor hour= $ 3.73 per labor hourTotal overhead applied $ 2354055Ordering and receiving= 11,400* $ 6.33=$ 71820Food processing =50,300 *$7.85= $ 394855Packaging = 506,000* 3.73= $ 1887830...