Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple,
Question:
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 plant wide factory overhead rate for May. $_______per direct labor hour
b. Compute May's product cost for each type of cookie.
Cost per box
Fluffs
Crinkles
Snaps
Total manufacturing cost
$____
$____
$ ____
Step by Step Answer:
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman