Broger Bites has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if Broger disce foods. The operating results from the most recent period are: Frozen Trowie Baked Goode Fresh Fruits Total $120,000 501.000 115,175 3300175 Cost of goods sold 105.000 67.000 110.000 280.000 SPS eines that support expenses, in total, wreappensimately 20% of reven The controller says that not every sales dollar requires or uses the same cent of weapport activities Apolony analysis reveals the support activities for these three productes Activity drive) Frozen Bed Fresh Fruite Total Over Treats Goode driver 20 Do we of our 00 130 300 order 12.400 15 200 390.00 dovenes blocking hours 30 170 500 38.000 ho 30.000 40,000 0.000 IM1.000 315.000 Total aweed costs Required 1. Volume besed: What is the overhead rate per unit if Broger uses units sold as the cost driver? 2 Volume based: How much overhead is allocated to Frozen Treats using units sold as the allocation base? 3. Volume based: What is the net profit or loss on the Frozen Treats? Activity based: Calculate the overhead rate for each of the four activities above. (Order processing, receiving, shelf stocking, and customer support) 5. Activity based: How much overhead is allocated to Frozen Treats using the activity rates you calculated in part 4 6. Activity based: What is the net profit or loss on the Frozen Treats? for the talhar ALT+F10 Pr ALTEN-F10 IMC Broger Bites has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if Broger disce foods. The operating results from the most recent period are: Frozen Trowie Baked Goode Fresh Fruits Total $120,000 501.000 115,175 3300175 Cost of goods sold 105.000 67.000 110.000 280.000 SPS eines that support expenses, in total, wreappensimately 20% of reven The controller says that not every sales dollar requires or uses the same cent of weapport activities Apolony analysis reveals the support activities for these three productes Activity drive) Frozen Bed Fresh Fruite Total Over Treats Goode driver 20 Do we of our 00 130 300 order 12.400 15 200 390.00 dovenes blocking hours 30 170 500 38.000 ho 30.000 40,000 0.000 IM1.000 315.000 Total aweed costs Required 1. Volume besed: What is the overhead rate per unit if Broger uses units sold as the cost driver? 2 Volume based: How much overhead is allocated to Frozen Treats using units sold as the allocation base? 3. Volume based: What is the net profit or loss on the Frozen Treats? Activity based: Calculate the overhead rate for each of the four activities above. (Order processing, receiving, shelf stocking, and customer support) 5. Activity based: How much overhead is allocated to Frozen Treats using the activity rates you calculated in part 4 6. Activity based: What is the net profit or loss on the Frozen Treats? for the talhar ALT+F10 Pr ALTEN-F10 IMC
