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Solar Salt Company has divisions. Sales, direct materials cost, and direct labor cost data for Solar Salt's two divisions are not available. However: manufacturing
Solar Salt Company has divisions. Sales, direct materials cost, and direct labor cost data for Solar Salt's two divisions are not available. However: manufacturing overhead and gross profit data for the two divisions are available, as follows: Gross profit Agricultural Products 150,000 Retail Products 100,000 *Manufacturmg overhead is allocated to production based on the amount of direct labor cost. Solar Salt has determined that its total manufacturing overhead cost of $700,000 is a mixture of unit-level costs, batch-level costs, and product line costs. Solar Salt has assembled the following information concernmg the manufacturing overhead costs: the annual number ofunits produced: production batches, and number of product lines in each division: Unit-level overhead Batch-level overhead Product line overhead Total Manufacturing Overhead Costs $210,000 280,000 210,000 $700,000 Agricultural Products 7,500 SO batches 10 lines 13,500 90 batches 18 lines How much will GROSS PROFIT in each of the divisions be if Solar Salt adopts an activity-based costing sy stem? Agricultural Agricultural Agricultural Agricultural Agricultural Agricultural Agricultural Agricultural Retail, S100,ooo Retail: loss of Retail: S300:ooo loss ofSSO:OOO; Retail, loss ofSIOO,OOO sso:ooo; Retail: S200:ooo S150:ooo; Retail: S100,ooo S250:ooo; Retail: S4so:ooo loss ofS50,OOO; Retail, $300,000 Solar Salt Company has divisions. Sales, direct materials cost, and direct labor cost data for Solar Salt's two divisions are not available. However: manufacturing overhead and gross profit data for the two divisions are available, as follows: Gross profit Agricultural Products 150,000 Retail Products 100,000 *Manufacturmg overhead is allocated to production based on the amount of direct labor cost. Solar Salt has determined that its total manufacturing overhead cost of $700,000 is a mixture of unit-level costs, batch-level costs, and product line costs. Solar Salt has assembled the following information concernmg the manufacturing overhead costs: the annual number ofunits produced: production batches, and number of product lines in each division: Unit-level overhead Batch-level overhead Product line overhead Total Manufacturing Overhead Costs $210,000 280,000 210,000 $700,000 Agricultural Products 7,500 SO batches 10 lines 13,500 90 batches 18 lines How much will GROSS PROFIT in each of the divisions be if Solar Salt adopts an activity-based costing sy stem? Agricultural Agricultural Agricultural Agricultural Agricultural Agricultural Agricultural Agricultural Retail, S100,ooo Retail: loss of Retail: S300:ooo loss ofSSO:OOO; Retail, loss ofSIOO,OOO sso:ooo; Retail: S200:ooo S150:ooo; Retail: S100,ooo S250:ooo; Retail: S4so:ooo loss ofS50,OOO; Retail, $300,000
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