Coffee Bean, Incorporated $($CBI$),$ is a processor and distributor of a variety of blends of coffee. The company buys coffee beans from Required $1A$

Using direct labor$-$hours as the base for assigning manufacturing overhead cost to products, determine the unit product cost

of one pound of the Mona Loa coffee and one pound of the Malaysian coffee.

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places. Using activity$-$based costing as the basis for assigning manufacturing overhead cost to products, determine the total amount

of manufacturing overhead cost assigned to the Mona Loa coffee and to the Malaysian coffee for the year.

Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Required $1$ A

Reaulred $1$ B

Reauired $2A$

Reauired $2$B

Required $2$C

Using activity

Required $2B$

gning manufacturing overhead cost to products, compute the amount of

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.Using activity$-$based costing as the basis for assigning manufacturing overhead cost to products, determine the unit product

cost of one pound of the Mona Loa coffee and one pound of the Malaysian coffee.

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.

around the world and roasts, blends, and packages them for resale. CBI offers a large variety of different coffees that it sells to

gourmet shops in one$-$pound bags. The major cost of the coffee is raw materials. However, the company's predominantly automated

roasting, blending, and packing processes require a substantial amount of manufacturing overhead. The company uses relatively little

direct labor. Some of CBI's coffees are very popular and sell in large volumes, while a few of the newer blends sell in very low volumes.

For the coming year, CBI's budget includes estimated manufacturing overhead cost of $$2,880,000.$ CBI assigns manufacturing

overhead to products on the basis of direct labor$-$hours. The expected direct labor cost totals $$576,000,$ which represents $48,000$

hours of direct labor time.

The expected costs for direct materials and direct labor for one$-$pound bags of two of the company's coffee products appear below.

CBI's controller believes that the company's traditional costing system may be providing misleading cost information. To determine

whether or not this is correct, the controller has prepared an analysis of the year's expected manufacturing overhead costs, as shown

in the following table:

Data regarding the expected production of Mona Loa and Malaysian coffee are presented below. There will be no raw materials

inventory for either of these coffees at the beginning of the year.

Required:

Using direct labor$-$hours as the base for assigning manufacturing overhead cost to products, do the following:

a$.$ Determine the predetermined overhead rate that will be used during the year.

b$.$ Determine the unit product cost of one pound of the Mona Loa coffee and one pound of the Malaysian coffee.

Using activity$-$based costing as the basis for assigning manufacturing overhead cost to products, do the following:

a$.$ Determine the total amount of manufacturing overhead cost assigned to the Mona Loa coffee and to the Malaysian coffee for the

year.

b$.$ Using the data developed in part $(2$a$)$ above, compute the amount of manufacturing overhead cost per pound of the Mona Loa

coffee and the Malaysian coffee.

c$.$ Determine the unit product cost of one pound of the Mona Loa coffee and one pound of the Malaysian coffee.

Complete this question by entering your answers in the tabs below.

Required $1A$

Required $2C$

Using direct labor$-$hours as the base for assigning manufacturing overhead cost to products, determine the predetermined

overhead rate that will be used during the year.