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 overhead 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: 
a.Compute Bugaboo's plantwide factory overhead rate for May.
b.Compute the product cost in May for each type of cookie.
c.Does Bugaboo's use of a plantwide factory overhead rate in any way distort the product costs for May?
Definitions:
Buying Decisions
The process or act of choosing to purchase a product or service based on various factors like need, desire, and affordability.
Social Factors
Elements that influence individuals' behavior and attitudes, including cultural, societal norms, and community influences.
Product Advantage
The benefits or superior features that make a product more desirable to consumers compared to competitors' offerings.
Buyer
An individual or entity that purchases goods or services for personal use or for the purpose of resale.
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