Kettle Snacks just received an order to produce 16,000 single- serving bags of gourmet, fancy- cut, low- fat potato chips. The order will require 16 preparation hours and 30 cooking and draining hours. Use the activity rates you calculated in S4- 4 to compute the following:
1. What is the total amount of manufacturing overhead that should be allocated to this order?
2. How much manufacturing overhead should be assigned to each bag?
3. What other costs will the company need to consider to determine the total ­manufacturing costs of this order?

  • CreatedAugust 27, 2014
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