Answer:
Instructions are lsited below.
Explanation:
Giving the following information:
Production= 12,000 single-serving bags of gourmet, fancy-cut, sweet potato chips.
The order will require 21 preparation hours and 36 cooking and draining hours.
We were not provided with enough information to solve the requirements. But, I will leave the formulas and an example to guide you.
First, we need to calculate the estimated manufacturing overhead rate for each department:
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
For example:
Preparation:
Estimated overhead= 100,000
Estimated preparation hours= 2,000
Estimated manufacturing overhead rate= 100,000/2,000= $50 per preparation hour
Cooking:
Estimated overhead= 175,000
Estimated cooking hours= 10,000
Estimated manufacturing overhead rate= 175,000/10,000= $17.5 per direct cooking hour.
Now, we can allocate overhead to the special order:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Preparation= 50*21= $1,050
Cooking= 17.5*36= $630
Unitary overhead= (1,050 + 630)/12,000= $0.14 per bag
The total manufacturing costs include direct labor, direct materials and allocated overhead:
Total manufacturing cost= direct material + direct labor + allocated overhead
For example:
DM= 300,000
DL= 200,000
Overhead= 1,680
Total manufacturing cost= 300,000 + 200,000 + 1,680= $501,680
