Brief Exercise 177 Spud Inc a manufacturer of gourmet potato

Brief Exercise 17-7 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 Estimated Overhead Expected Use of Cost Drivers per Activity Activity Cost Pools Ordering and receiving Food processing Packaging $94,582 479,085 13,100 orders 61,500 machine hours 1,395,280 428,000 labor hours For 2017, the company had 11,300 orders and used 51,200 machine hours, and labor hours totaled 491,000 Your answer is correct. Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Ordering and receiving Food processing Packaging 7.22 per order 7.79 per machine hour 3.26 per labor hour LINK TO TEXT NTERACTIVE TUTORIAL ! Your answer is incorrect. Try again. What is the total overhead applied? Total overhead applied Click if you 1968947 would like to Show Work for this question: Show Work LINK TO TEXT

Solution

Calculate overhead applied :

Ordering and receiving (11300*7.22)	81586
Food processing (51200*7.79)	398848
Packaging (491000*3.26)	1600660
Total overhead applied	2081094