Business, 15.04.2021 17:00 hkcapricorn7705

Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products using a single plantwide factory overhead rate based on direct labor hours. Information for the month of May, Bugaboo's first month of operations, follows: Budgeted Unit Volume Direct Labor Hours Per Unit Fluffs 80,000 boxes 0.10 Crinkles 60,000 boxes 0.20 Snaps 20,000 boxes 0.50 Bugaboo has budgeted direct labor costs for May at $8.50 per hour. Budgeted direct materials costs for May are: Fluffs, $0.75/unit; Crinkles $0.40/unit; and Snaps $0.30/unit. Bugaboo's budgeted overhead costs for May are: Indirect labor $280,000 Utilities 65,000 Supplies 45,000 Depreciation 30,000 Total $420,000 Round your answers to two decimal places, if necessary. a. Compute Bugaboo's plantwide factory overhead rate for May. $ fill in the blank 1 per direct labor hour b. Compute the product cost in May for each type of cookie. Fluffs Crinkles Snaps Cost per box $ fill in the blank 2 $ fill in the blank 3 $ fill in the blank 4 c. Does Bugaboo's use of a plantwide factory overhead rate in any way distort the product costs for May?

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Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process...

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