Gerbig Snacks produces different styles of potato chips (ruffled, flat, thick-cut, gourmet) for different corporate customers. Each
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Activity Manufacturing
Overhead Cost Driver
Preparation . . . . . . . . . . . . . . . . . . . . . . . . . $610,000.................Preparation time
Cooking and draining . . . . . . . . . . . . . . . . . $972,000....Cooking and draining time
Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . $320,000...................Units packaged
Compute the activity cost allocation rates for each activity assuming the following total estimated activity for the year: 10,000 preparation hours, 36,000 cooking and draining hours, and 4 million packages.
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