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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: Meats Fresh Produce Packaged Foods $485,000 Revenue $805,000 $825,000 Cost of goods sold $605,000 $585,000 $365,000 purchase orders 271 348 121 204 2,204 1,101 hours of stocking shelves items sold 312,000 422,000 123,000 The Company also provides the following information for 2019 for its three support activities: Support Activity Cost Driver Budgeted Cost $125,000 Ordering Shelf stocking $79,000 purchase orders hours of stocking shelves items sold Customer support $175,000 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 Fresh Produce. 185,680 You are correct. Your receipt no. Is 158-9809 Previous Tries 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 Meats? 114081 Incorrect
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