After much effort , we have transitioned our costing system from being based solely upon units sold (total units was 12000 units) to be based on multiple cost drivers. A customer made an offer for cookies, pastries and coffee. the order requires us to mic 5 batches and uses 10 baking hours to provide 200 cookies, 250 pastries and 400 cups of coffee.
1) Using the old overhead system, what is the total manufacturing cost of this order?
overhead rate :
total cost OH :
2) under the new overhead system what is the total manufacturing overhead cost of this order ?
OH rate:
total cost of OH:
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