Clucker Chicken Produces Several Styles of Precooked and Package Chicken

question 134

Essay

Clucker Chicken produces several styles of precooked and package chicken wings (drums,
tips,buffalo and coated with a variety of spices and sauces).Each style of wing requires different
preparation time,different cooking and draining times and different packaging.Therefore
the company management has decided to try ABC costing to better capture the manufacturing
overhead costs incurred by each style of wing.The following activities related to yearly
manufacturing overhead costs and cost drivers have been identified:

Compute the activity cost allocation rates for each activity assuming the following total estimated activity for the year: 45,000 hours preparation time,45,000 cooking and draining hours,and 9,000,000 packages.

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Definitions:

ERG Theory

A theory of human needs and motivation developed by Clayton Alderfer, which condenses Maslow's hierarchy into three core needs: Existence, Relatedness, and Growth.

Progressive Need Gratification

Progressive need gratification refers to the ongoing process of satisfying one’s needs and desires in a stepwise or continuous manner.

Existence Need Category

Basic human needs related to physical and material well-being, such as food, water, shelter, and safety.

Alderfer

Refers to Clayton Paul Alderfer's ERG theory, which condenses Maslow's hierarchy of needs into three core needs: Existence, Relatedness, and Growth.