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Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct tabor hours at a rate of per labor hour
Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct tabor hours at a rate of per labor hour Strawberty and vanilla flavors are produced in Department SV Chocolate is produced in Department Sven manages Department SV and Charlene manages Department. The product costs (per thousand gallons) follow, Direct Tabor (per 1.000 gallons $750 $ 135 11,125 Required: all the number of hours of labor per 1.000 gallons is 50 for strawberry, 55 for Vanilla, and 75 for chocolate, compute the total cost of 1000 gallons of each flavor using plantwide allocation b. Charlene's department uses older, outdated machines. She believes that her department is being allocated some of the overhead of Departments, which recently bought state of the-art machines After she requested that overhead costs be broken down by department, the following information was discovered Department 30 Department Overhead $105, machine hours 25,200 Labor-hours 25,200 $23.760 18.00 Using machine hours as the department allocation base for Department SV and tabor hours as the department allocation base for Department compute the allocation rate for each c Compute the cost of 1.000 gallons of each flavor of ice cream using the department allocation rates computed in requirement (6) the number of machine hours for 1000 gallons of each of the three flavors of ice cream are as follows strawberry, 50, vanilla, 55, and chocolate, 150. Direct labor hours by product remain the same as in requirement Using machine hours as the department allocation base for Department SV and labor hours as the department allocation base Department, compute the allocation rate for each c. Compute the cost of 1000 gallons of each flavor of ice cream using the department allocation rates computed in requiremen the number of machine hours for 1.000 gallons of each of the three flavors of ice cream are as follows strawberry, 50, vanilla, 5 chocolate, 150 Direct labor hours by product remain the same as in requirement (a). Complete this question by entering your answers in the tabs below. Required A Required B Required If the number of hours of labor per 1.000 gallons is so for strawberry, 55 for vanilla, and 75 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation. Total Con Strawberry Vanilla Chocolate Required A Required B Required c Using machine-hours as the department allocation base for Department SV and la for Department C, compute the allocation rate for each. (Round your answers to Department SV Department Allocation Rate per machine hour per labor hour Required A Required B Required CM Compute the cost of 1,000 gallons of each flavor of ice cream using the department allocation rates computed in requir (b) if the number of machine-hours for 1,000 gallons of each of the three flavors of ice cream are as follows: strawberr vanilla, 55; and chocolate, 150. Direct labor-hours by product remain the same as in requirement (a). Strawberry Vanilla Chocolate
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