Question
1. Barktic Force makes three products in their Red Deer factory: dog sweaters, dog boots, and dog jackets. The current policy is to apply packing
1. Barktic Force makes three products in their Red Deer factory: dog sweaters, dog boots, and dog jackets. The current policy is to apply packing department costs to products on the number of units shipped. Barktic Force is considering a new allocation base for the packing department overhead. The new allocation base would be a number of pallets packed. The number of units shipped and the number of pallets shipped for each product is as follows
Products | units shipped | pallets packed |
Dog sweaters | 63,000 | 315 |
Dog Jackets | 47,000 | 235 |
Dog Boots | 140,000 | 250 |
Total packing department cost is $224,000.
A. How much packing overhead cost is applied to each product line (dog sweaters, dog jackets, dog boots) under the current system?
B. What is the per unit amount of packing overhead applied to each product (dog sweaters, dog jackets, dog boots) under the current system?
C. How much packing overhead cost would be applied to each product line (dog sweaters, dog jackets, dog boots) under the new allocation base system?
D. What is the per unit amount of packing overhead applied to each product (dog sweaters, dog jackets, dog boots) under the new allocation base system? (Just need help with this one)
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