In 2020, the loading/unloading department for DP Worlds Prince Rupert facilities handled on average 3,200 of the 45-foot containers per day. In 2020, the container decontamination department for DP Worlds Prince Rupert facilities handled on average 400 of the 45-foot containers per day.

DP world is a company which creates revenues through two operating departments, the loading/unloading ,Of the $876 million invested by DP World into the Fairview container port, 90 percent ($788.4 million) was invested in the loading/unloading department assets and 5% ($43.8 million) was invested in the container decontamination department assets. The other 5% was invested in corporate office which has an expected zero return. The company expects the loading/unloading department to generate an ROI of 15% per year before tax over the planned 20-year life of the current equipment and expects the container decontamination department to generate an ROI of 7% per year before tax over the planned 25-year life of the current equipment. The methodology that DP World uses to price its services for its shipping customers is to arrive at a cost that includes the ROI plus all applicable costs. Therefore, the total cost per container that is charged to a customer includes total costs plus the required ROI per container. DP World's $200 million expansion readied Fairview to accept the largest vessels at sea, which are increasingly favored by shippers seeking to load more containers to reduce costs. DP World has two operating departments, with the first department called loading/unloading and the second department called container storage. DP World operates 24/7 and is open 365 days per year. DP World has the following container variable overhead costs,The port variable overhead costs are allocated to the operating departments using the direct method. By allocating the port's variable overhead costs, DP World is able to calculate a VMOH cost per container for each department, assume there is 365 days in each year including 2020.

*PLEASE FOLLOW EXCEL FORMAT DOWN BELOW*

*PLEASE INCLUDE ALL CALCULATIONS AS WELL*

*DO NOT COPY AND PASTE FROM OTHER QUESTIONS*

Complete a Department and Production Line Income Statement using VMOH Direct Method Allocation, Physical Measure Joint Cost Allocation, and Variable Costing Income Statement Format. Your answer should follow the template shown below and be in a tab named Q2. Hints are shown in yellow highlights in the template below.

Complete an analysis of the operating income and cost per container as shown below. Your answer should follow the following template. Hints are shown in yellow highlights in the template below.

Quick response will be really appreciated.

DP World has the following container variable overhead costs: Support Departments Port Information Maintenance Services Operating Departments Loading / Container Unloading Decontamination Total Budgeted Port Variable Overhead costs before any interdepartmental cost allocations $9,000,000 $1,800,000 $9,804,000 $274,000 $20,878,000 Support Work Furnished by: Port Maintenance Budgeted labour hours Percentage Information Services Budgeted Computer Hours Percentage 233,600 40.0% 58,400 292,000 50.0% 584,000 100.0% 10.0% 50,000 5,000 10.0% 20,000 40.0% 25,000 50.0% 100.0% The port has become so cost effective that costs are now lower than any other port in North America. The costs for 2020 show the various rates related to the Fairview Container port as follows: Total Costs Totals 3,600 Load / Unload Powered Units 800 $25.00 $48.00 Load / Unload Non- Powered Units 2,400 $8.00 $32.001 Container Decontamination 400 $5.00 $5.00 Containers per day DM Costs per Container DML Costs per Container Variable Manufacturing Allocated Variable Joint Costs (Physical Measure to load/Unload only) Fixed costs per container Period Operating Costs per Year $36,500,000.00 $30.751 $2,117,000 $30.75 $6,351,000 $10.00 $1,450,000 $9,928,000 DP World Fairview Container Port Partial Income Statement for Period Ended December 31, 2020 Department and Production Line Income Load / Unload Container Statement using VMOH Direct Method Load / Unload Non- Total Load / Powered Units Decontamination Allocation, Physical Measure Joint Cost Powered Units (2,400 Unload Total (800 containers Department (400 Allocation, and Variable Costing Income containers per day) Department per day) containers per day) Statement Format Revenues $XXX,824,000 Variable Costs Allocated Variable Joint Costs Direct Materials Direct Labour Allocated VMOH Total Variable Costs Contribution Margin 5,986,000 Period Costs Fixed Costs Period Operating Costs Total Period Costs Operating Income before Tax $88,695,000 DP World Fairview Container Port Partial Income Statement per Container for Period Ended December 31, 2020 Load / Unload Powered Units (800 containers Load / Unload Non- Powered Units (2,400 containers per day) Container Decontamination Department (400 containers per day) per day) Department and Production Line Income Statement using VMOH Direct Method Allocation, Physical Measure Joint Cost Allocation, and Variable Costing Income Statement Format Revenue by Container Type and Department Variable Costs per Container Allocated Variable Joint Costs Direct Materials Direct Labour Allocated VMOH Total Variable Costs per Container Type Contribution Margin per Container Type Period Costs per Container Type Fixed Costs Period Operating Costs Total Period Costs per Container Type Operating Income Per Container Type before Tax 139.25