Sparks Company Produces and Distributes Two Types of Garden Sculptures

question 19

Essay

Sparks Company produces and distributes two types of garden sculptures, Plain and Fancy. Budgeted cost and activity for each of its three activity cost pools are shown below. The company plans to produce and sell 64,000 plain units and 49,150 fancy units. a. Compute the approximate overhead cost per unit of Plain under activity-based costing.
b. Compute the approximate overhead cost per unit of Fancy under activity-based costing.

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Definitions:

Hydrothermal Vents

Fissures in the deep ocean floor that release hot water and inorganic compounds.

Organic Molecules

Chemical compounds that contain carbon and are found in all living organisms, essential for life.

Organic Polymers

Large molecules composed of repeated subunits (monomers) that are typically carbon-based, like proteins, nucleic acids, and plastics.

Silt

Fine particles of rock and soil that are smaller than sand and larger than clay, often found on riverbeds and fertile agricultural lands.