Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here a scenario question, if ice maker is selling ice cream to as followed 25% of capacity to A Supermart at markup of 80% on

Here a scenario question, if ice maker is selling ice cream to as followed

  • 25% of capacity to A Supermart at markup of 80% on imputed fixed cost and labour cost
  • 30% of capacity to B Supermart at markup of 80% on imputed fixed cost and labour cost and ingredient cost
  • 40% of capacity to direct sales of customers at markup of 80% on imputed fixed cost and labour cost and ingredient cost

The following is the given information on ice maker

Ice cream revenue = $2,760,000

Variable Cost for Ingredient = $350,000

Variable Cost for Labour = $900,000

Contribution = $1,510,000

Imputed fixed cost = $500,000

Can anyone teach me how to allocate as I have tried 1.8(fixed cost +variable cost) = 3,150,000. which doesn't tie to $2,760,000, hence, i couldn't allocate to A, B, and direct customer. that is all the information from the question.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting with International Financial Reporting Standards

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

4th edition

1119504309, 1-119-50340-8, 9781119503408 , 978-1119504306

More Books

Students also viewed these Accounting questions