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ABC Costing The Price is Right Grocery chain has decided to increase the size of its Huntsville, Alabama store. The supermarket chain desires to gather

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ABC Costing The Price is Right Grocery chain has decided to increase the size of its Huntsville, Alabama store. The supermarket chain desires to gather information about the profitability of individual product lines such as soft drinks, fresh produce, and packaged food. The data below is from its 2019 operations for each product line. The Stores Product Lines Soft Drinks Fresh Produce Packaged Fresh Produce Total $840,240 O Revenues $317,400 Cost of Goods Sold 240,000 Cost of bottles returned 4,800 Number of purchase orders 144 placed Number of deliveries received 120 Hours of shelf-stocking time 216 Items sold 50,400 441 For the past several years, The Price is Right Grocery chain has been charging overhead to product lines on the basis on Cost of Goods Soid. The Price is Right Grocery chain also provided the following data: Activity Description of Activity Total Costs Cost Allocation Base Bottle returns Returning of empty botties to store $4,800 4,800 bottles returned Ordering Placing of orders for purchases $62.400 624 purchase orders Delivery Physical delivery & receipt of $100,800 1,260 deliveries merchandise Shelf-stocking Stocking & restocking store shelves $69,120 3,456 hours of shelf stocking Assistance provided to customers 5122,880 614,400 items sold Customer support Total Store Support Costs $360,000 Required: Record your final answer to each question on the blank line, 1. The grocery chain allocates store support costs to product lines on the basis of cost of goods sold of each product line. Compute the predetermined overhead rate using traditional costing with cost of goods sold as the basis (remember to use TOTAL Estimated numbers) $ 2. Calculate the amount of overhead assigned to each product line Soft drinks Fresh Produce Packaged Foods 3. It allocates store support costs to product lines using an ABC system, calculate the activity med overhead rate for each activity Bottle Returns Ordering Delivery Shelf-stocking Customer Support 4. Using the actual data provided below, calculate total overhead cost assigned under ABC Number of bottles retumed 4,400 Number of purchase orders 620 Deliveries 1,265 Shelf-stocking hours 3,440 Number of items sold 614,000 5. Total Overhead: Per bottle return Per purchase order Per delivery Per stocking-hour Per item sold Total Overhead

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