Pack just received an order to produce 12 000 single serving bags
Pack just received an order to produce 12,000 single-serving bags of gourmet, fancy-cut, low-fat potato chips. The order will require 16 preparation hours and 32 cooking and draining hours. Use the activity rates you calculated in S4-4 to compute the following:
1. What is the total amount of MOH that should be allocated to this order?
2. How much MOH should be assigned to each bag?
3. What other costs will Pack need to consider to determine the total manufacturing costs of this order?
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