Assume that a pet food manufacturer is considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 1/2pound cans.

The company identified the following partial list of activities, costs, and activity drivers expected for the next year:

Refer to the data above. How much overhead cost will be assigned to each unit of product using activity-based costing (ABC)?

? Dog food: $4.62: cat food: $4.62

? Dog food: $2.64: cat food $2.64

? Dog food: $8.60: cat food: $0.33.

? Dog food: $0.26: cat food: $8.60

? Dog food: $0.12: cat food: $3.85.

Transcribed Image Text:

Activity Handling materials Storage costs Production volume Batches made Expected Costs $105,000 $820,000 Weight of finished product Cost Driver Number of batches made Dog Food 100,000 units 200 batches Cat Food 200,000 units 150 batches Activity Handling materials Storage costs Production volume Batches made Expected Costs $105,000 $820,000 Weight of finished product Cost Driver Number of batches made Dog Food 100,000 units 200 batches Cat Food 200,000 units 150 batches

Answer rating: 100% (QA)

c Dog food 860 cat food 033 MH is based on total batches 105000 200 150 3... View the full answer