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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.

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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) Raw materials (per 1.000 gallons) Strawberry Vanilla $763 $ 838 513 Chocolate $1,138 613 Required: a. If the number of hours of labor per 1,000 gallons is 55 for strawberry, 60 for vanilla, and 75 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation. Department SV, which recently bought state-of-the-art machines. After she requested that overhead costs be broken down by b. Charlene's department uses older, outdated machines. She believes that her department is being allocated some of the overhead of department, the following information was discovered: Departments Department Overhead 25,330 37,300 25,330 $81,056 $ 2,830 Machine-hours Labor-hours 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, 55, vanilla, 60; and chocolate. 163. 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 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 55 for strawberry, 60 for vanilla, and 75 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation. Total Cost Strawberry Vanilla Chocolate Required Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required 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.) Allocation Rate Department SV per machine hour Department per labor hour 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, 55; vanilla, 60; and chocolate, 163. Direct labor-hours by product remain the same as in requirement (a). Total Cost Strawberry Vanilla Chocolate

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