Information is given below
 

Activity Purchasing Materials handling Quality control Roasting Blending Packaging Total factory overhead cost Cost Driver Purchase orders Budgeted sales Batch size Setups Purchase order size Roasting time Blending time Packaging time Setups Batches Roasting hours Blending hours Packaging hours Mona Loa 100,800 pounds 9,200 pounds 3 per batch 24,200 pounds Budgeted Driver Consumption 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds 1,078 1,720 640 Data regarding the current year's production of just two of its lines, Mona Loa and Malaysian, follow. There is no beginning or ending direct materials inventory for either of these coffees. 95,300 32,800 25,200 Budgeted Cost $ 571,000 712,000 136,000 953,000 328,000 252,000 $ 2,952,000 Malaysian 1,920 pounds 420 pounds 3 per batch 420 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Required: 1. Using Coffee Bean Incorporated's current product costing system, a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver. b. Determine the full product costs and selling prices of one pound of Mona Loa coffee and one pound of Malaysian coffee. 2. Using an activity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee and 1 pound of Malaysian coffee. Allocate all overhead costs to the 100,800 pounds of Mona Loa and the 1,920 pounds of Malaysian. Activity Purchasing Materials handling Quality control Roasting Blending Packaging Total factory overhead cost Cost Driver Purchase orders Budgeted sales Batch size Setups Purchase order size Roasting time Blending time Packaging time Setups Batches Roasting hours Blending hours Packaging hours Mona Loa 100,800 pounds 9,200 pounds 3 per batch 24,200 pounds Budgeted Driver Consumption 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds 1,078 1,720 640 Data regarding the current year's production of just two of its lines, Mona Loa and Malaysian, follow. There is no beginning or ending direct materials inventory for either of these coffees. 95,300 32,800 25,200 Budgeted Cost $ 571,000 712,000 136,000 953,000 328,000 252,000 $ 2,952,000 Malaysian 1,920 pounds 420 pounds 3 per batch 420 pounds 1 hour per 100 pounds 0.5 hour per 100 pounds 0.1 hour per 100 pounds Required: 1. Using Coffee Bean Incorporated's current product costing system, a. Determine the company's predetermined overhead rate using direct labor cost as the single cost driver. b. Determine the full product costs and selling prices of one pound of Mona Loa coffee and one pound of Malaysian coffee. 2. Using an activity-based costing approach, develop a new product cost for 1 pound of Mona Loa coffee and 1 pound of Malaysian coffee. Allocate all overhead costs to the 100,800 pounds of Mona Loa and the 1,920 pounds of Malaysian.