The part on the right cut off says this: Extra Virgin 108,000 hours 80,000 bottles answer all questions

The part on the right cut off says this: Extra Virgin 108,000 hours 80,000 bottles answer all questions. you! Transcribed Image Text: Rosehut Olive Oil Company makes two grades of olive oil: standard and extra virgin. Rosehut has identified two activity cost pools, the
related costs per pool, the cost driver for each pool, and the expected usage for each pool.
Total
Activity
Activity
Cost
Cost Driver
Standard
Extra V
Washing, Pressing & Filtering (WPF)
Bottling
$1,736,000 Washing, Pressing, and Filtering hours
$ 840,000
47,000 hours
320,000 bottles
108,000
80,000
Number of bottles
Additional information about each grade of olive oil is as follows:
Direct
Materials
Direct
Sales
Labor
Grade
Revenue
Costs
Costs
$5,150, 000
$2,600,000
$900,000
$600,000
$375,000
$150, 000
Standard
Extra Virgin
Required:
1. Calculate the activity rate for each cost pool.
2. Using the activity rates, determine the total amount of overhead assigned to each product.
3. Determine total manufacturing cost for each product. Transcribed Image Text: Required:
1. Calculate the activity rate for each cost pool.
2. Using the activity rates, determine the total amount of overhead assigned to each product.
3. Determine total manufacturing cost for each product.
4. Calculate the gross profit for each product.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Calculate the activity rate for each cost pool. (Round your answers to 2 decimal places.)
Activity
Cost Pool
Washing, Pressing & Filtering (WPF)
per hour
Bottling
per bottle
< Required 1 Required 2 >

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