Kates Kale Chips produces a healthy snack made primarily of kale. Each bag of the...
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Accounting
Kates Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $ The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from the projections of Kates Kale Chips for the upcoming quarter:
Projections
Sales bags
Production bags
Variable manufacturing cost per bag $
Sales and distribution costs per bag $
Total fixed manufacturing overhead $
Fixed administrative overhead $
Required:
Compute the projected product cost per bag produced under full costing.
Compute the projected product cost per bag under variable costing.
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