Mars Bar Company produces two products, Milky Way and Snickers.
The indirect labor costs include the following two items:
Plant supervision
$ 700,000
Setup labor (indirect)
300,000
Total indirect labor
$1,000,000
The following activity-base usage and unit production
information is available for the two products:
Number of
Setups
Direct Labor
Hours
Units
Product Milky Way
200
20,000
900
Product Snickers
200
30,000
1,100
Totals
400
50,000
2,000
a.
Determine the single plantwide factory overhead rate, using
direct...