Aunt Dorothy Snacks produces different styles of sweet potato chips ruffled flat, thickcut, gourmet for different corporate customers.
View additional information and data. packages.
Begin by determining the formula for calculating activity cost allocation rate, then calculate the rates for each activity. Round the rate to the nearest cent.
tableratePreparationper hourCookingdrainingper hourPackagingper pkg
Additional information and data
Each style of sweet potato chip requires different preparation time, different cooking and draining times depending on desired fat content and different packaging single serving versus bulk Therefore, Aunt Dorothy has decided to try ABC to better capture the manufacturing overhead costs incurred by each style of chip.
Aunt Dorothy has identified the following activities related to yearly manufacturing overhead costs and cost drivers associated with producing sweet potato chips:
tableActivitytableManufacturingOverheadCost DriverPreparation dotsdotsdots..dots,Preparation time,,,Cooking and draining dots..$Cooking and draining time,,,Packaging dotsdotsdots,Units packaged,,,
