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.
(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:
State-Dependent
Referring to the phenomenon where the ability to retrieve information is influenced by the physiological or emotional state at the time of learning.
Analogical Learning
Acquiring new knowledge or solving problems by drawing parallels between similar situations or concepts.
Base
In marketing, the foundational audience or customer segment that a company focuses on or starts with.
Target
An objective or goal that an individual, group, or organization aims to achieve or reach.
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