Sports Nutrition, Inc. makes two types of health bars and is implementing an ABC system....
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Accounting
Sports Nutrition, Inc. makes two types of health bars and is implementing an ABC system. Previously, all overhead totaling $81,000 had been applied on the basis of machine hours (9,000 total for the period; 5,000 for Nutty Bars and 4,000 for Raisin Bars). The company produces 22,500 units of Nutty Bars and 54,000 units of Raisin Bars. Additional data is as follows:
Cost Driver and
Estimated
Estimated Level
Overhead
Use of Cost Driver
Use of Cost Driver
Cost Pool
of Activity
Cost
by Nutty Bars
by Raisin Bars
Equipment Setup
100 setups
$20,000
65 setups
35 setups
Materials Ordering
140 orders
$21,000
95 orders
45 orders
Quality Control
200 inspections
$22,000
150 inspections
50 inspections
Mixing
9,000 machine hours
$18,000
5,000 machine hours
4,000 machine hours
What is the total overhead cost applied to Raisin Bars when using activity-based costing?
Group of answer choices
$53,750
$36,000
$27,250
$45,000
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