Soup-Can-Alley makes a variety of organic soups. Each variety of soup uses varying amounts of overhead...
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Soup-Can-Alley makes a variety of organic soups. Each variety of soup uses varying amounts of overhead resources in the soup-making kitchen. The soup is made in batches and its overhead is costed using activity-based costing. Total overhead for the year is estimated at $665,000, which is allocated to its soup batches based on the following activities: Activity Prepping Cooking Burner hours Canning Number of cans Driver DLH Budgeted use of driver 120,000 35,000 400,000 $1,120 $6,320 $6,650 $11,850 Budgeted cost of driver $ 480,000 $105,000 $80,000 $665,000 The production manager is planning to fill a customer order of 4,000 cans of vegetable barley soup. Direct ingredients for the order are $3,600. Direct labour is estimated at $1,600. Prepping will take 50 direct labour hours, and cooking will take 40 burner hours. What is the total cost of the batch of vegetable barley soup using activity-based costing to assign overhead? Soup-Can-Alley makes a variety of organic soups. Each variety of soup uses varying amounts of overhead resources in the soup-making kitchen. The soup is made in batches and its overhead is costed using activity-based costing. Total overhead for the year is estimated at $665,000, which is allocated to its soup batches based on the following activities: Activity Prepping Cooking Burner hours Canning Number of cans Driver DLH Budgeted use of driver 120,000 35,000 400,000 $1,120 $6,320 $6,650 $11,850 Budgeted cost of driver $ 480,000 $105,000 $80,000 $665,000 The production manager is planning to fill a customer order of 4,000 cans of vegetable barley soup. Direct ingredients for the order are $3,600. Direct labour is estimated at $1,600. Prepping will take 50 direct labour hours, and cooking will take 40 burner hours. What is the total cost of the batch of vegetable barley soup using activity-based costing to assign overhead?
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Related Book For
Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant
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