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Family Supermarkets has decided to increase the size of its Lansing store. It wants information about the profitability of its individual product lines: meats, fresh
Family Supermarkets has decided to increase the size of its Lansing store. It wants information about the profitability of its individual product lines: meats, fresh produce, and packaged food. The following data is for 2019 for each product line: Fresh Produce Packaged Foods Meats $790,000 Revenue $825,000 $495,000 $375,000 Cost of goods sold purchase orders hours of stocking shelves $590,000 279 $585,000 324 2,096 147 1,102 218 items sold 324,000 434,000 106,000 The Company also provides the following information for 2019 for its three support activities: Cost Driver purchase orders Support Activity Ordering Shell stocking Customer support Budgeted Cost $125,000 $57,000 $181,000 hours of stocking shelves Items sold REQUIRED (ROUND ALL OVERHEAD RATES TO TWO DECIMAL PLACES AND ALL ALLOCATIONS TO THE NEAREST DOLLAR.] Part A (5 tries; 5 points) Family Supermarkets currently uses a single driver system to allocate period costs to its product lines. The single driver that is used is the the number of items sold of each product line. Using this system, compute the allocation to Packaged Foods. Submit Answer Tries 0/5 Part B (5 tries; 5 points) If Family Supermarkets instead used an activity-based costing system to allocate period costs, with the cost pools and cost drivers listed in the tables above, how much would be allocated to Fresh Produce? Tries 0/5 Submit
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