After learning that their bid was rejected for being too high, IP decided to use ABC costing to calculate their unit cost and then submit a new bid. They were able to break out their production support costs as follows:

	Total Costs	Allocation Basis	To Retail	To Institutional
Packaging Materials	$188,000	# Deliveries	190	10
Cleaning	$120,000	Pounds	900,000	100,000
Cutting	$231,000	hours	3600 hours	250 hours
Packaging	$444,000	hours	36,000 hours	1,000 hours
Total	$983,000

Required

• Calculate the overhead rates for all four cost pools
• Calculate the amount of overhead allocated to the institutional potatoes
• Calculate the total cost for the institutional potatoes
• Calculate the cost per unit for the institutional potatoes
• Calculate the total cost per units for the institutional potatoes.
• Calculate the total cost for 25,000 institutional potatoes.
• Calculate the selling price for 25,000 institutional potatoes.

	Packaging Materials	Cleaning	Cutting	Packaging
Total Overhead
Total Base
Rate
Amount Allocated to Institutional

Total Overhead Allocated Institutional
Total Direct Materials Institutional
Total Costs Institutional
Cost Per Pound
Total Cost for 25,000 pounds
Selling Price for 25,000 pounds