Solution-Discuss what is the overhead cost per unit for

Discuss what is the overhead cost per unit for nutty bars

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Reference no: EM131752594

Health Solutions, Inc. makes two types of health bars and is implementing an ABC system. Previously, all overhead totaling $81,000 had been applied on the basis of machine hours (9,000 total for the period; 5,000 for Nutty Bars and 4,000 for Raisin Bars). The company produces 22,500 units of Nutty Bars and 42,284 units of Raisin Bars. Additional data is as follows:

Cost Driver and	Estimated
	Estimated Level	Overhead	Use of Cost Driver	Use of Cost Driver
Cost Pool	of Activity	Cost	by Nutty Bars	by Raisin Bars
Equipment Setup	100 setups	$20,000	65 setups	35 setups
Materials Ordering	140 orders	$21,000	95 orders	45 orders
Quality Control	200 inspections	$22,000	150 inspections	50 inspections
Mixing	9,000 machine hours	$18,000	5,000 machine hours	4,000 machine hours

What is the overhead cost per unit for Nutty Bars when all overhead is applied based on machine hours using one plantwide rate? (Hint: Start by calculating the predetermined overhead rate per machine hour.)

Reference no: EM131752594

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Discuss what is the overhead cost per unit for nutty bars

Reference no: EM131752594

Reference no: EM131752594

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