Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Total Activity Cost Activity Washing, Pressing & Filtering (WPF) Bottling $1,550, 150 $ 453,000 Additional information about each grade of olive oil is as follows: Direct Materials Costs Grade Standard. Extra Virgin Sales Revenue $ 5,105,000 $ 2,150,000 Cost Driver Washing, Pressing, and Filtering hours. Number of bottles. Direct Labor Costs $ 900,000 $375,000 $ 600,000 $ 150,000 Required: 1. Calculate the activity rate for each activity pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Standard 45,200 hours 302,000 bottles Extra Virgin 105,300 hours 75,500 bottles

Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity pools, the related costs per pool, the cost driver for each pool, and the expected usage for each pool. Total Activity Cost Activity Washing, Pressing & Filtering (WPF) Bottling $1,550, 150 $ 453,000 Additional information about each grade of olive oil is as follows: Direct Materials Costs Grade Standard. Extra Virgin Sales Revenue $ 5,105,000 $ 2,150,000 Cost Driver Washing, Pressing, and Filtering hours. Number of bottles. Direct Labor Costs $ 900,000 $375,000 $ 600,000 $ 150,000 Required: 1. Calculate the activity rate for each activity pool. 2. Using the activity rates, determine the total amount of overhead assigned to each product. 3. Determine total manufacturing cost for each product. 4. Calculate the gross profit for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Standard 45,200 hours 302,000 bottles Extra Virgin 105,300 hours 75,500 bottles

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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