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Business, 25.02.2020 19:22 alghazal7408

Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2017.

Activity Cost Pools Estimated Overhead Expected Use of Cost per Activity
Ordering and receiving $95,990 Expected Use of Cost per Activity
Food processing 508,400 62,000 machine hours
Packaging 1,409,370 431,000 labor hours
For 2017, the company had 10,700 orders and used 49,400 machine hours, and labor hours totaled 500,000.

Calcuate the overhead rates tor each actvity.

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