Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the...
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Accounting
Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from the projections of Kate's Kale Chips for the upcoming quarter:
Projection
sSales23,000bags
Production25,000bags
Variable manufacturing cost per bag$2.60
Sales and distribution costs per bag$0.45
Total fixed manufacturing overhead$52,500
Fixed administrative overhead$21,000
Required:
1. Compute the projected product cost per bag produced under full costing.
2. Compute the projected product cost per bag under variable costing.
(For all requirements, do not round intermediate calculations.Round your answer to 2 decimal places.)
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