Question: CALCULATOR PRINTER VERSION BACK NEXT Exercise 17-11 (Part Level Submission) Health 'R Us, Inc., uses a traditional product costing system to assign overhead costs uniformly
CALCULATOR PRINTER VERSION BACK NEXT Exercise 17-11 (Part Level Submission) Health 'R Us, Inc., uses a traditional product costing system to assign overhead costs uniformly to all its packaged multigrain products. To requirements and to assure its customers of safe, sanitary, and nutritious food, Health 'R Us engages in a high level of quality control. Health R Us assigns its quality-contro overhead costs to all products at a rate of 17% of direct labor costs. ts direct labor cost for the month or une st Data elatn to e low-calone breakfast ine forthe for its low-calorie breakfast line is $65,000. In response to repeated requests from its financial vice president, Health R Us's management agrees to adopt activity-besed costing. Data to adopt activity-based costing. Data relating to the low-calorie breakfast line for the month of June are as follows. Overhead Rate Number of Cost Drivers Activity Cost Pools Cost Drivers Inspections of material received Number of pounds In-process inspections FDA certification Used per Activity 5,500 pounds 9,500 servings $.90 per pound Number of servings $0.33 per serving Customer orders 12.00 per order 400 orders Your answer is incorrect. Try again. Compute the quality-control overhead cost to be assigned to the low-calorie breakfast product line for the month of June (1) (direct labor cost is the cost driver), and (2) using activity-based costing. Traditional product costing Activity-based costing 12155 13530 Quality-control overhead cost to be assigned Open Show Work Click if you would like to Show Work for this question: O' APPLIED SKILLS
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