Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $2 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 Direct labor (per 1,000 gallons) Row materials (per 1,000 gallons) Strawberry Vanilla $755 $ 830 805 505 Chocolate $1,139 605 Required: a. If the number of hours of labor per 1000 gallons is 56 for strawberry, 66 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 b. Charlene's department uses older, outdated machines.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: Overhead Machine-hours Labor-hours Department sy $75,750 25,250 25,250 Department $14,274 36,500 18,300 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, 56, vanilla, 66, and chocolate, 155. Direct labor hours by product remain the same as in requirement (a) Cathy, the manager of Cathy's Catering, Inc, uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties--an afternoon picnic and an evening formal dinner. The breakdown of the costs follows. Activities and cost drivers) Afternoon Picnic Formal Dinner Advertising (parties) $ 113 per party 5 113 per party Planning (parties) $ 58 per party $ 132 per party Renting equipment (parties, guests) $ 41 per party plus $14 per guest $ 68 per party plus $23 per guest Obtaining insurance (parties) $ 240 per party $ 350 per party Serving (parties, servers) $ 50 per server per party $ 78 per server per party Preparing food (guests) $ 16 per guest $ 28 per guest Per party costs do not vary with the number of guests Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs