The Answer is <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7934/11eb2346_586a_cffe_aa27_a9ece8146249_TB7934_00.jpg" alt=" Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base = $420,000 ÷ 30,000 dlh = $14.00 per direct labor hour c.A much higher overhead rate per box is being charged to the product that uses the highest amount of the single allocation base. This may be an incorrect allocation of factory overhead costs." class="answers-bank-image d-block" rel="preload" > Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base = $420,000 ÷ 30,000 dlh = $14.00 per direct labor hour <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7934/11eb2346_586a_cfff_aa27_6b229baef3e2_TB7934_00.jpg" alt=" Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base = $420,000 ÷ 30,000 dlh = $14.00 per direct labor hour c.A much higher overhead rate per box is being charged to the product that uses the highest amount of the single allocation base. This may be an incorrect allocation of factory overhead costs." class="answers-bank-image d-block" rel="preload" > c.A much higher overhead rate per box is being charged to the product that uses the highest amount of the single allocation base. This may be an incorrect allocation of factory overhead costs.

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Bugaboo Co

Question 1

Essay

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?

Bugaboo Co

Essay

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