Achey Cakey sells boxes of speciality cupcakes to stores. It has two product lines: The Teeny...

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Achey Cakey sells boxes of speciality cupcakes to stores. It has two product lines: The "Teeny" which is a box of two cupcakes made with low fat products and reduced sugar, and the "Mega" which is a box of six cupcakes made with extra butter and sugar. There are four cost pools: Mixing, Baking, Finishing, and packaging. Information about the cost pools for the coming year is as follows: Cost Pool Cost Cost driver Mixing $200,000 Mixing hours Budgeted usage 100,000 Baking $100,000 Baking hours 100,000 Finishing What is the predetermined allocation rate for Mixing? Packaging $800,000 $10,000 Number of cupcakes Machine hours 500,000 8,000 Achey Cakey sells boxes of speciality cupcakes to stores. It has two product lines: The "Teeny" which is a box of two cupcakes made with low fat products and reduced sugar, and the "Mega" which is a box of six cupcakes made with extra butter and sugar. There are four cost pools: Mixing, Baking, Finishing, and packaging. Information about the cost pools for the coming year is as follows: Cost Pool Cost Cost driver Mixing $200,000 Mixing hours Budgeted usage 100,000 Baking $100,000 Baking hours 100,000 Finishing What is the predetermined allocation rate for Mixing? Packaging $800,000 $10,000 Number of cupcakes Machine hours 500,000 8,000

Answer rating: 100% (QA)

The predetermined allocation rate for Mixing can be calculated as follows Predetermined all... View the full answer