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Main Street Ice Cream Company uses a plantide alocation method to allocate overhead based on direct labor hours at a rate of $2 per labor-hour.

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Main Street Ice Cream Company uses a plantide alocation method to allocate overhead based on direct labor hours at a rate of $2 per labor-hour. Strawberry and vanile favors are produced in Department SV Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department. The product costs (par tousand gallons) follow Swem Chocolate Direct obor (per 1.000 galon) $700 $$ 11,141 Raw materials per 1.000 gallon) 510 016 Required 3. the number of houm of labor per 1,000 pelons in 60 for strawberry, 70 for varite, and 100 for chocolate, computo the total cost of 1,000 gallons of each favor using plantwide allocation Total Cou Strawberry Vanille Chocolate b. Charlene's department uses older, outdated machines. She believes that her department is being alocated some of the overhead of Department SV, which recently bought state of the-art machines. After she requested that overhead costs be broken down by department, the following information was discovered Departments Department Overhead $8.700 $916 Machine hours 25360 37.100 Labor hours 25.360 18,300 Using machine hours as the department location base for Department SV and labor hours as the department location base for Department compute the location rate for each. (Round your answers to 2 decimal places) Departments Department Allocation Rate per machine hour per labor hour c. Comote the cost of 1.000 gallons of each favor of foe creaming the department location rates computed in requirement () the number of machine-hours for 1.000 galons of each of the three flavors of Ice cream are as follows strawberry, 60 ani, 70, and chocolate, 166. Direct labor-hours by product remain the same as in requiremental Total Cost Strawberry Vanita Chocolate

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