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Determine the activity-based cost for cookies and crackers

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Reference no: EM132690730

Problem - Activity-based costing, manufacturing - Ming Cookie Company uses activity-based costing to allocate factory overhead. Four activities and their activity rates are as follows:

Activity

Activity Rate

Cooking

$45 per cooking hour

Inspecting

$80 per inspection

Material control

$28 per move

Setup

$500 per setup

Ming plans to make 10,000 units each of two different products, cookies and crackers. The activity-base usage quantities for each product is as follows:

Cooking

Inspecting

Material Control

Setup

Cookies

1,200

80

50

10

Crackers

1,200

240

150

50

Total

2,400

320

200

60

Required - Determine the activity-based cost for the cookies and crackers.

Reference no: EM132690730

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