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)	$	768		$	843		$	1,143
Raw materials (per 1,000 gallons)		818			518			618

Required:

a. If the number of hours of labor per 1,000 gallons is 60 for strawberry, 70 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b. Charlene's department uses older, outdated machines.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	$	93,906		$	38,665
Machine-hours		25,380			37,800
Labor-hours		25,380			18,500

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, 60; vanilla, 70; and chocolate, 168. Direct labor-hours by product remain the same as in requirement (a).

Required A Required B Required C If the number of hours of labor per 1,000 gallons is 60 f. cost of 1,000 gallons of each flavor using plantwide alloc Total Cost Strawberry Vanilla Chocolate Required A Required B Required C Using machine-hours as the department allocation base for D for Department C, compute the allocation rate for each. (Rou Department SV Department Allocation Rate per machine hour per labor hour Required A Required B Required C Compute the cost of 1,000 gallons of each flavor (b) if the number of machine-hours for 1,000 gall vanilla, 70; and chocolate, 168. Direct labor-hour Total Cost Strawberry Vanilla Chocolate