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 rate based on direct labor hours.Information for the month of May,Bugaboo's first month of operations,follows:

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:

Assume that Bugaboo sells all the boxes it produces in May.

Question

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 rate based on direct labor hours.Information for the month of May,Bugaboo's first month of operations,follows:
​
  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:
​
  Assume that Bugaboo sells all the boxes it produces in May.

Quizplus · Accepted Answer

The Answer of 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 rate based on direct labor hours.Information for the month of May,Bugaboo's first month of operations,follows:
​
  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:
​
  Assume that Bugaboo sells all the boxes it produces in May.