Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple,

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Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products using a single plantwide factory rate based on direct labor hours. Information for the month of May, Bugaboo's first month of operations, follows:
Direct Labor Hours per unit Budgeted Unit Volume 80,000 boxes 0.10 Fluffs Crinkles 60,000 boxes 0.20 Snaps 20,000 boxes

Bugaboo has budgeted direct labor costs for May at $8.50 per hour. Budgeted direct materials costs for May are: Fluffs, $0.75/unit; Crinkles $0.40/unit; and Snaps $0.30/unit.
Bugaboo's budgeted overhead costs for May are:

Indirect Labor $280,000 Utilities $65,000 Supplies $45,000 Depreciation $30,000 Total $420,000

Assume that Bugaboo sells all the boxes it produces in May. Round your answers to two decimal places, if necessary.
a. Compute Bugaboo's plantwide factory overhead rate for May.$_______per direct labor hour
b. Compute May's product cost for each type of cookie.

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