Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $3 per labor-hour. Strawberry and vanilla flavors are produced in Department SV. Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department C. The product costs (per thousand gallons) follow. Strawberry Vanilla Chocolate Direct labor (per 1,000 gallons) $751 $ 826 $1,126 Raw materials (per 1,000 gallons) 801 501 601 Required: a. If the number of hours of labor per 1.000 gallons is 51 for strawberry, 56 for vanilla, and 100 for chocolate, compute the total cost of 1,000 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 b. Charlene's department uses older, outdated machines.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 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: Department SV Department C Overhead $100,840 $34,740 Machine-hours 25,210 36,100 Labor-hours 25,210 18,000 Using machine-hours as the department allocation base for Department SV and labor hours as the department allocation base for Department C, 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 (b) if the number of machine-hours for 1,000 gallons of each of the three flavors of ice cream are as follows: strawberry, 51; vanilla, 56; and chocolate, 151. 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 Required C Using machine-hours as the department allocation base for Department SV and labor-hours as the department allocation base for Department C, compute the allocation rate for each. (Round your answers to 2 decimal places) Complete this question by entering your answers in the tabs below. Required Required B Required Required If the number or hours of labor per 1,000 gallons is 51 for strawberry, 56 for vanilla, and 100 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation. Laulul 25,210 18,00 Using machine-hours as the department allocation base for Department SV and labor-hours as the department allocation base for Department C, 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 (b) if the number of machine-hours for 1,000 gallons of each of the three flavors of ice cream are as follows: strawberry, 51; vanilla, 56; and chocolate, 151. 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 Compute the cost of 1,000 gallons of each flavor of ice cream using the department allocation rates computed in requirement (b) if the number of machine-hours for 1,000 gallons of each of the three flavors of ice cream are as follows: strawberry, 51; vanilla, 56; and chocolate, 151. Direct labor-hours by product remain the same as in requirement (a).
