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Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream.The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available: Macaroon Sugar Buttercream Projected sales in units 500,000 800,000 600,000 PER UNIT data:1. Selling price $0.80 $0.75 $0.60. 2. Direct materials $0.20 $0.15 $0.14. 3. Direct labor $0.04 $0.02 $0.02. Hours per 1000-unit batch: 1. 5. Direct labor hours 2.00 1.00 1.00. 2. Oven hours 1.00 1.00 1.00. 3. Packaging hours 0.50 0.50 0.50. Total overhead costs and activity levels for the year are estimated as follows: 1. Activity Overhead costs Activity levelsDirect labor 2,400 hours. 2. Oven 210,000 1,900 oven hours Packaging 150,000 950 packaging hours $360,000. Compute the estimated overhead costs per thousand cookie.
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