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Rising Sun,Inc Rising Sun's Total Expected Overhead Costs and Related Overhead Data

question 40

Essay

Rising Sun,Inc.produces granola that requires two processes,mixing and baking,to complete.The best-selling type of granola is cherry almond delight.Information related to the 100,000 units of cherry almond delight produced annually is shown in the following table:
 Direct materials $230,000 Direct labor  Mixing Department (600 DLH ×$24 per  DLH) $14,400 Baking Department (400 DLH ×$22 per  DLH) $8,800 Machine hours  Mixing Department 200MH Baking Department 300MH\begin{array}{|l|r|}\hline \text { Direct materials } & \$ 230,000 \\\hline \text { Direct labor } & \\\hline\begin{array}{c} \text { Mixing Department (600 DLH } \times \$ 24 \text { per } \\\text { DLH) }\end{array} & \$ 14,400\\\hline \begin{array}{l}\text { Baking Department (400 DLH } \times \$ 22 \text { per } \\\text { DLH) }\end{array} & \$ 8,800 \\\hline \text { Machine hours } & \\\hline \text { Mixing Department } & 200 \mathrm{MH} \\\hline \text { Baking Department } &300 \mathrm{MH} \\\hline\end{array}


Rising Sun's total expected overhead costs and related overhead data are shown below.The company uses departmental overhead rates based on machine hours in the mixing department and direct labor hours in the baking department.
 Mixing  Department  Baking  Department  Direct labor hours 11,000DLH5,000DLH Machine hours 4,000MH3,000MH Manufacturing overhead  costs $80,000$12,500\begin{array} { | l | r | r | } \hline & { \begin{array} { c } \text { Mixing } \\\text { Department }\end{array} } & \begin{array} { c } \text { Baking } \\\text { Department }\end{array} \\\hline \text { Direct labor hours } & 11,000 \mathrm { DLH } & 5,000 \mathrm { DLH } \\\hline \text { Machine hours } & 4,000 \mathrm { MH } & \mathbf { 3 , 0 0 0 \mathrm { MH } } \\\hline \begin{array} { l } \text { Manufacturing overhead } \\\text { costs }\end{array} & \$ 80,000 & \$ 12,500 \\\hline\end{array}
Determine the total product cost of this product line and each unit of cherry almond delight.


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