Kateâs 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 Kateâs Kale Chips for the upcoming quarter:
Projections
Sales 27,000 bags
Production 29,000 bags
Variable manufacturing cost per bag $ 3.40
Sales and distribution costs per bag $ 0.35
Total fixed manufacturing overhead $ 49,300
Fixed administrative overhead $ 25,000
Required:
1. Compute the projected product cost per bag produced under absorption costing. (Do not round your intermediate calculations. Round your answer to 2 decimal places.)2. Compute the projected product cost per bag under variable costing. (Round your final answer to 2 decimal places.)
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Kateâs Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for...
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